Then the offer/counter offer phase goes as discussed above.

I declined the initial offer and counter-offered. 

Account ClosedCheck with your IRA custodian, some will allow you to sign some documents, essentially documents not recorded, while other custodians don't want you singing any documents.It is cumbersome when there are offers and counteroffers back and forth, and you need the custodian to sing/initial each change. 

In the Chicago area, however, it is very likely you'll wait four months to get a counter offer from the bank, so I always tell my investors, expect to negotiate.  

After the inspection, that uncovered a lot of major problems, I counteroffered a new fair price. 

Explain why its necessary, most people will understand, but if they fight it, invite a counter offer.

We are going to counteroffer quite low (like 100k lower) as that is what we think we could make it work at.

If someone doesn't accept your offer, but they counter-offer, the original offer is off the table. 

I just figured my realtor sent copies of the rental agreements to the mortgage broker and they figured it out amongst each other.I just looked over my signed acceptance of the seller's counter offer and it does state that he will provide "All income rental reports, Rental inspection reports, and Pertinent information about the units that the seller currently has available to him within 3 business days."

I would suggest that you make a counter offer to them.