Let's say the tenant/buyer approves of this, the attorney drafts and approves the whole contract for me and we're all aware the worst case scenario (i'm assuming) is tenant/buyer changing their mind and challenging with lawsuit.But assuming they DO NOT challenge..My question is - could the State of TX or other jurisdiction act independently of this harmonious arrangement and file their own lawsuit against me (the investor/seller), if they found something deficient in the contract? 

If you are already being called to the unit to do repairs, do that annual inspection at that time and make notes of every possible deficiency or issue that could negatively impact your asset, do not ignore anything or avoid dealing with more than the service call, look for everything and try to anticipate the consequences.

Yep many judgments never collect.Just like deficiency banks will go after a borrower sometimes and wait.With both types they just pay an attorney to file and record it.You leave it alone and eventually one of 3 things will happen.They will file a BK.They will want to buy a house or clean up the credit and will offer to pay part of the balance for a release or pay in full.So if the amount owed is substantial you pay the attorney to file and play the percentages on collection.

The short-term solution is working with a partner or more expensive contractor that can make-up for this deficiency.

It seems to me, that so far as the above does not impair the Mortgagee from the second legal process of a Judgement of Deficiency, which is where the court calculates the amounts due on to the Borrower not recovered by liquidation of the asset either at auction or through REO sale, then the Mortgagee will be in the same place, in terms of aggregate amounts recovered.  

An inspector should be able to point out any visible deficiencies, and potentially costly problems.

They are offering more in an effort to blind you to deficiencies in their application; or3.

If you want to get a personal judgment against an LLC owner who has incorporated, you must prove that the LLC is not being managed properly by some statutory or case law deficiency.

They had a both at last years Noteworthy conference and the pitch there was assistance in determining if a borrower had assets worth pursuing in the collection of deficiency judgments.Another thought, I suspect that @Dave Van Hornmay be able to shed some additional light here as well.

And the list of other deficiencies was long.