Did he misunderstand?

You just have a misunderstanding of the appraisal process.  

.- dated, now incorrect, statement about Canadians and our propensity towards debt and savings;- misunderstanding about {residential} real-estate financing in Canada;- claim there are no programs similar to FHA available in Canada {CMHC provides similar insured mortgage and first time homeowner programs};... that's about where I stopped.

Unless I am misunderstanding. 

@Brent CoombsI believe you misunderstand my intent.

I may be misunderstanding the laws, but I believe as long as you are not declining them based on being a protected class (discrimination) or something discovered on the background checks (FCRA, in which case you would have to send an adverse action letter), you can decline them for "not being a good fit."

Hi @Nate Shields,I think most here are misunderstanding your question.Your issue is that your property is not grandfathered in it's zoning status.

The estoppel certificate will save you from misunderstanding with the inherited tenants regarding ownership of appliances or other personal properties in the units, as well as misunderstandings regarding amounts of security deposits or other he said- she said that may come up after closing when the current landlord is out of the picture.

Sorry if there is any misunderstanding. 

I would stop this before your reputation is ruined.If I am misunderstanding the situation please let me know.If you think you can sell the deal at a higher price, get it under contract, CLOSE ON IT, then sell it.