Your profile mentions that you are a real estate agent - You want to have a conversation to see if you potentially are eligible to claim real estate professional status which would allow you to treat your rental losses as active instead of passive.Also have a conversation if you are required to make estimated tax payments since there is no withholding on your commissions.Lastly, your profile mentions you are in Florida which does not have a state income tax which opens you up to more options for choosing an accountant.

It could be a red flag if the agent is intentionally withholding information about other available properties in order to steer you towards certain listings for their own benefit.

"Some sponsors will not "lie"; yet intentionally withhold the full truth.

My other concern is that he is claiming this to 1-stay in the house somehow or 2- withhold rent.

And then he should get a refund for his withholding. 

As a former "foreign investor" myself it's all about the team that you hire in the US make sure they have experience with FIRPTA Withholding and nonresident alien financing.

I'm withholding a pro rated rent amount for the time the property was held and an admin fee for getting her set up with all the documents and managment software.

My loan person said we might be able to do a escrow withholding where they keep the money for repairs until after closing. 

Looks like my lender can do a escrow withhold and get the oven and hood after closing.

This feels naive. 2) Do I withhold payment until his insurance company will verify his statement about payout should he vanish?