It is just a legal filing.   

The way the condo is set up, I would need to allocate the one window in the living room to the new bedroom, meaning the living room will no longer have a window.I know bedrooms require certain legal restrictions to be met (2 egress, certain size, etc).

Biggest risk is the complaints from neighbors about the noise, although I've heard that there are new paddles that dampen the noise quite a bit? 

.- Legal and Regulatory Framework: RERA Approval: Verify that the project is registered with the Real Estate Regulatory Authority (RERA) and has all necessary approvals. 

What is the smartest way legally and financially to transfer the property from their name to our name?

Fourth: Do not forget legal and compliance research for the property in question.

You can't foreclose because you don't have any legal means to foreclose.

In my state (PA) an EMD is legally optional although I have never seen a deal without one and the submission of the EMD might happen with execution of the contract or often the contract gives the buyer 5 or 7 days to submit the EMD, but the deal doesn't automatically become  void if it isn't submitted.

Any suggestions on how to legally put Damage Deposits into a CD to gain interest? 

Can cover legal fees if I need to evict. etc....