Besides, in my market, law schools have students constantly making calls to landlords trying to get them to violate fair housing and they press charges as an exercise.

Ours does, except that a few years ago our restrictions were amended so that part of the garage could be used for exercise equipment.

Do I make it conditional on my first exercising my rights under Option #1?

This has been an ongoing exercise that occupies quite a bit of our time.As far as I know, we are also the only company that sells real estate investor websites and allows you to install them on your own host (server).

I will leave connecting the dots as an exercise to the reader.....

Exercise in 30 months.

Do you simply exercise your option to buy the land before selling?

I've read NJ does, but never seen it exercised (limited experience) @Steve BabiakEven so, if a buyer has 30 days to pay funds in full, and we did become aware of something after 10 days, we could wait that out before funding, as could/would anyone else, I suppose. 

He will have violated the terms of the contract and they are well within their right to accelerate the loan if they choose to exercise that right.

Some contracts have additional conditions on the loan contingency.....can’t be used within 7 days of closing, waiver of contingency if not exercised by a certain date, etc.