My goal with this is so funds are not commingled and protected with lawsuits.

@Bjorn Ahlbladit is $100, so no big deal either way...I causally mentioned that I would take it off the refund, and tenant threats lawsuit, so got me triggered...But thank you for your inputs..

They are not a magic lawsuit eliminator.

The other buyer could also include you in a lawsuit if they go that route, probably unlikely but you never know.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris lawsuits and/or Morris Invest lawsuits for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.

There is a lawsuit pending in either FL or CA against an agent who did the same thing.

Class action lawsuits have started to fly.You may want to potentially keep it as simple as possible and either tack on a set amount for water/sewer per person or increase the base rental rate to avoid the legal compliance issues.

I wouldn't be surprised if there isn't a class action lawsuit that comes out of this with VBRO and AIRBNB.

I think what she has done has also probably opened her to a lawsuit from her buyer as well as it has left them in a super difficult position (where they probably won't be able to sell the house the bought from her.)   

I never had sellers fill them out, because an error - even an unintentional error - is prima facie evidence for a lawsuit.