It’s always tricky navigating tenant disputes, especially when things get personal like this.

If a dispute doesn't work, ask the lender to order a new one.

They may have thought I was clueless to market rent, but they gave me notice and I had got rid of a tenant with little chance they would dispute anything.  

You seem to want to dispute that, but home prices have approximately quintupled since 1980 in Illinois, where the initial example was setA property that quintupled since 1980 would not have such a low price as the Peoria example.

It ain't over till the curvy lady sings :-)Sue,  prescriptive rights and adverse possession are very tough things to prove and take years.. and you normally have to pay the tax's on the disputed property which most don't do. for a title company to insure the boundary's he would have had to buy and ALTA policy and most just use a CLTA which does not provide for boundary accuracy.. 

NO kidding way over thought and over kill.. a landlord with proper insurance and takes care of their property ( not a slum lord) has extremely low liability issues.. disputes with tenants is generally over deposits and when you go to evict them..

If an applicant had a dispute with their Eviction Screening Report, how should the property manager handle this?

That way, 1) you should get the money up front when they leave instead of having to chase them down for it and 2) it makes the accounting easier and less likely the departing tenant will dispute the charge. 

How to properly send an inspection resolution back to a buyer? 

Look for clauses related to payment schedules, reconstruction, and dispute resolution.