Also, on the form it should state that should she back out she forfeits her deposit. 

Buyer has Inspected the property prior to this agreement being signed or has forfeited their desire to do so.

Buyer has Inspected the property prior to this agreement being signed or has forfeited their desire to do so.Buyer understands that this property is being sold 'AS IS' and releases Seller of any and all responsibility for repairs.Thank you!

I'd love to hear if someone has achieved that however, and was able to put the property into an LLC after the transaction without violating the due on sale clause. 2) I forfeit many protections of the LLC by being a resident and manager of the property. 

From reading the entire statute and the other deadlines, they obviously intended that the investor forfeit the right to be paid if it misses that first deadline, so we now officially read that into the statute, and that's the law from now on." 

So, SD will be forfeited.

If I were the seller, and you brought this up this far into the process (after I had granted an inspection extension on good faith that you would honor our agreement), I would give you the option to close according to the agreed upon terms, or forfeit your earnest money.

So, if they wanted to make things less scary for the seller, they might agree to record a quit claim deed at closing returning the property to the seller, and then draft the note such that, upon any default, said deed would be executed.If the investor does default, things would have really gone sideways for them: They would have just forfeited sweet, low-cost, non-qualifying, non-recourse financing.

That will be forfeited if your buyer doesn't come through.  

I asked if there were any penalties or down payment that would be forfeit if the seller and I were unable to successfully negotiate costs for repairs and whatnot after the offer is accepted.