First, it may be considered a fraudulent transfer.

Either which way you slice it, it would be fraudulent. 

By your own admission, You have canceled the contract, there is no longer a valid purchase agreement so filing any memorandum/cloud on your part would be a Fraudulent filing.  

They made the accusation that we knew mold problems, but fraudulently did not disclose and therefore the lease is invalid.  

I find that with a 50/50 arrangement, there's less of an argument as to who contributed more, and if you play you cards right, as everything is a gamble, you might even wind up ahead.I once did a rehab and flip deal with a local agent, who made it his business to find such deals.

Never occupying the property could appear fraudulent.

@Randall Alan I own no propertiesl ive with my parents served 4 yrs in army I get 4k monthly for 100% disability my dad owns 3 business in Newark and philly area which I manage and earn 1k a week also I own 15 atms in the philly area which make me 11k a month(around 850 each or so) under my dads business so that money I don't make technically because there under he's business accounts finally I own 5 gambling machines which are legal in philly which make me 10k or so a month .

The town was going through a lot of improvements and i (gambled) figured this was "the path of development."

I haven't found it to be onerous as most of what they ask for are things I would fix anyway.The biggest fear I have for Section 8 is my tenant does something fraudulent and it comes back to bite me. 

While wealth does not necessarily equate to intelligence, there is still a logical explanation for why CA real estate prices are high - all these people cannot simply be gambling, right?