We are trying to compose the lease with clear interpretation as to who the parties are and their roles.

Based upon our interpretations of tax code, this is what could be considered a grey area.

I'd take a look at the label and then google how to interpret the numbers.I'd love to know what you find out.Still if it ain't broke ...Put back some money so your ready when it does go.

There is no benefit to you to open yourself up for liability and a judge's interpretation of this indemnity.

It can be hard to interpret what needs to be done (or if it was done correctly) from a title report.

@Brendan LawrenceHonestly, I'm not sure how you are interpreting my statement.. :)Put it another way... 

I reached out to few lenders and one of them who offered is saying that this is Fannie Mae form that buyer has to sign and leaving to my own interpretation (which means they won't clarify in writing). 

When fully executed by ALL parties to it, due diligence is triggered, followed by a P&S, which, when signed by ALL parties to it replaces and extinguishes the written offer.In Maine, we go straight to P&S, which also serves as the offer and triggers due diligence when signed by ALL parties.So in this NJ case, regardless of local customs, an unsigned offer or proposal cannot be interpreted as a binding contract.

Ideally, whether or not this was a partnership needs to be explored with a competent accountant.Now, I understand that you may not want to invest in this analysis and decide to stick to your possibly incorrect interpretation.

The spirit of the law is another and up for interpretation, if you abuse it, then a court may find you in violation of the spirit of that law.At the end of they day, do what you feel is right and you wouldn't mind your family reading about in the newspaper.