I'd require further examination of the issue from a different contractor.  

But every state is different so follow what ever the title examiner at the Title and escrow company told you.. they are the ones who have to insure it.. regardless it would be rare to the extreme for IRS to come in and pay U off plus interest..

We have had people claim to find bedbugs I order to cancel reservations but yet after experts do a full examination of an 8 unit building for hours they can’t find a single sign of anything.

It is worth examining the trends and projections in these industries and considering how they may impact the demand for real estate in the area. 

It appears from your post that you do have some arguments in support of your position but this is something your lawyer needs to examine and advise you on.3.

Also be sure to closely examine your projected CAM charges.

Before you send someone money, get on a plane and examine the deals for yourself.

In addition, you will want to really examine their situation.

It's not a good idea to do that without consulting with the tax advisor to the S Corp and making sure the distribution for each partner has been examined and greenlit as low-to-no chance of tax consequences in the short-term. 

My name is Ryan and I recently passed my Real Estate Salesperson exam in Iowa, and I will begin my career in the Southwest Iowa region (Omaha NE, Council Bluffs, IA area).