We recently had an agent fined $50k for neglecting to include the LB Brochures.

It can also lead to abuse by tenants and neglect of properties by landlords, as there's no incentive to improve housing.If anyone doesn't know yet there's a major push for rent controls in cities across California and even at the state level (AB1506 trying to spread it to SFRs and condominiums). 

I already offered him about 20K discount on the listing price as I want to sell the house fast due to my financial circumstances.

A good agent will act as an adviser and will help in making important decisions or at least providing you good information so you can make the best decision for your current circumstances.

You have areas that are devastated from years of  neglect and urban decay.

I don't understand why paying rent is suddenly a problem if you haven't raised the rent.Also, it sounds like they and their dog are destroying the place through neglect. 

We are extremely excited about our new real estate adventure and due to our circumstance, this seems to be the best way for us to get our foot in the door as well as get in our very first place together this year.

., the guy is very angry at his current circumstances and I would give him some deposit back if I believed he would move out on his own, but I from the lies, and his statements I think he is going to stay as long as he can.

I've been skeptical about getting the contracts that most people have been using because I want to them to be legit and explanatory so I am protected under any circumstance regarding the laws in New Jersey. 

@Zack Aguilera As of now that it is going into the policy binder (with circumstance of coarse!).