If it was then you would have to declare it as income or amend your tax return to increase the taxable gain from the sale.

See the explanation here: https://www.tn.gov/revenue/article/fae-fonce-exemption.However, in 2009 the TN legislature amended the FONCE exemption to no longer include rent from industrial and commercial property – so if you’re into commercial real estate investment (which includes property with more than 4 units) you’re paying the full bill.

Indemnity and Sub-contractor clause should be in the contract, it is not a letter, you have to amend and revise the whole contract for it to he fully binding, but this is overkill.

The short version is a remaining sale would have to happen at which point he could amend for a refund within the appropriate time frame; however, there are other facts and circumstances that may cause issues. 

So, if someone files their 2017 taxes in 2020, then realizes he claimed a large loan as income instead of as a loan, then amends the return in 2021 to reflect that it was a loan not income and the IRS sends a letter in late 2021 indicating that the amended return needs to be resubmitted and requires beginning with using the originally submitted numbers instead of changing the numbers to what they should have been, when does the 3 year clock start on auditing?

Would it be legal for me to amend the contract for a $157,500 purchase price so that the bank would lend 80% of $157,500?

To do that, you’d have to amend the PA and select a different inspection contingency).

That is a violation of the 5th Amendment.

However, the rules and regulations don't have anything specifically calling that out, the only thing that is in there is this:  For any violation of the Declaration prohibition on short-term leasing, defined as any term less than six (6) months of occupancy for hotel or transient purposes, a fine of $1,000.00 per day will be assessed against the unit for first and subsequent violations.In conjunction with the below clause in a rental cap amendment, the board somehow conflated the two to come up with a $12,000 fine. 

If you need more time to get those numbers, then your agent can write up an amendment to request more time.