Flat out, I realize we're friends/family, but I need this lease in place to comply with laws that require things in writing and for my protection should there ever be issues.

All this is doing is delaying the process by a month and it'll become law.

I know people in Canada, China, England etc. that own property.There is no law I am aware of that says who can and cannot own real estate.  

Malibu allows it but requires a 15% "hotel tax" on the gross revenue.I would recommend looking out of state or underwrite the property as a long term rental in the event laws change.

Withoutknowing the details I can not suggest which would be right to add on.Several you should pay attention to are:- Ordinance & Law: Provides additional building coverage to deal with rebuilding costIncreases due to changes in Zoning or Building laws- Personal Injury Liability: Libel, defamation of character, wrongful imprisonment, etc.

Our laws require us to offer a rental first come first served (first completed application that qualifies must be offered the unit).

I would like to speak with local investors, real estate agents, property managers, lenders, etc. from the area.

Everything I am learning about mentions Local.

Ian - do you have any recommendations for a good securities law attorney? 

If there is something going on that is making you fearful then you may want to get law enforcement involved.