My property management agreements have similar language.

It looks as though the language is written for a singular tenant (i.e., apostrophe after the "t").

The information is provided in 'how to get your security deposit back at the end of your lease' language.  

They will have regular list of investors they work with and speak their language.

One key component is making sure there is language that outlines how the purchase price is reduced if a payment is received BEFORE the closing.

A lot of cities floor me by telling me they don't allow it but then they can't tell me where to see the language of the law.

Right now we use the "opt-out" language but we will more than likely be upgrading to take that out.

The important language in your reply is "on their behalf" -- redirecting the principal's funds is not acting on their behalf.Seems to me the smartest/easiest way to deal with lender escrow accounts is to have that feature eliminated from the loan ASAP in the subto process... preferably immediately after an annual tax disbursement reduces the account balance to a low point.But yes, when the principal dies so does the power.

You can add language such as "Inspection for information purposes only" or similar to convey that you won't expect repairs or cash concessions from the seller, but you do not want to lose the ability to walk away if you find that the house is in shoddy condition and you should not trust an inspection report that is not from an independent source and provided to you outside of the seller. 

I'm trying to perfect the language to attract both traditional and distressed sellers.