PSA - An addendum doesn't typically extend beyond settlement.

Proving reasonable care and diligence is highly subjective and will cost more in legal fees than the buyer's share of a $20k settlement. 

And you have to buy title insurance again (it’s possible if you use the same settlement company they can cut you a deal).

Some private lenders require a cancelled check to have automatic loan payments set up, but in my experience, lenders don't wire money directly to YOUR bank account--it goes to a settlement agent who disburses the funds.

I just closed one off-market where buyer and seller split my fee 50/50 at settlement. 

@Kristin Kiddy, Even in the briefest of moments in between sale and purchase while the escrow officer picks up a fresh pen you will have constructive receipt of the funds without a QI documentation on the settlement statements. 

My questions:Is 1” difference a big deal, or is this normal settlement?

Your Qualified Intermediary should be able to walk you through your closing/settlement statement and identify those items that are permissible vs. non-permissible so that you can decide if you want to contribute out-of-pocket funds into the closing to offset the taxable boot. 

I got $20k of settlement money from a car wreck when I was 20 and had my heart set on Joshua Tree for an STR, but it was just out of my price point.

Under UCC Art. 4 and 4-A, the payment obligation is suspended when the obligor (tenant) initiates the transfer and is discharged when final settlement occurs between the transferor and transferee banks.