If you have quality legal representation, you can likely loop-hole your way out of it.  

Is it basically a way to contractually have me commit to paying them, but a loophole so that it does not interfere with the new seller financing laws?

Why not find out what the laws are before committing to such a scenario I can honestly say cities do not let you slide or give small fines and tenants are very aware of laws and loopholes

Also the depreciation laws for tax savings have a couple of major loopholes which can save you a large amount on income tax.The negatives are close to zero capital appreciation, a declining population due to the lowest birthrate globally (currently dropping 250,000-300,000 people a year), floating rate on most all bank loans (although it's a near certainty these won't be going up anytime soon as its been said if interest rates in Japan hit 2.5% the government would currently go bankrupt), and the highest debt to GDP ratio of any country in the world putting a dampening on future economic outlook.For net yields you're looking at 3-6% in and around Tokyo, 6-8% in the other major cities, and closer to 8-10% outside of that, although there are always lots of exceptions.  

they update these leases every year to conform with the chicago rlto.interesting sidenote, make sure you purchase new leases every year, because the ordinance requires a lease summary for the year the lease was originated with the correct interest amounts due for security deposits. just another loophole for chicago landlords.good luck and let me know if you have any questions.

In any case, would squatter rights be a loop hole for me as well.Thank you so much !!

FHA is actually quite inflexible- the only loophole I've read is in the language for the regs it says the owner must occupy the "majority of the year" to me that's 6 months and a day.

There are people in the house wanting to eliminate the tax loophole.

For future readers in Florida the loophole is to let it expire on sunbiz administratively and when done just pay a $110 reinstatement fee instead of the $400 late fee.

I read Multifamily Millions by David Lindahl, I went to Lifestyles Unlimited two day workshop in Houston, I read Loopholes of RE by Garrett Sutton, and I started 1031 exchanging my pricey San Diego single family (10 condos with HOA fees that were clearly out of my control) for a 10 unit in Cleveland Heights, 8 unit in Shaker Heights, 12 unit in Euclid, 12 unit in Painesville, 15 unit in Painesville, 21 unit in Painesville.