Schedule B - Exceptions seem reasonable enough and not a problem.AND I'm wondering if I need the insurance part since they seem to be legally non-liable for anything that might emerge beyond what they have sent me details of and I have to sign the affadavit to seal the deal with the title company for insurance. 

I use the oil based kind - just seems odd to use water-based water seal paint. 

USREEB has a 90-day warranty on rehab so they did offer to fix alot from the survey but they would only seal the basement and not provide support.

If the deal never hit the market, you have much better shot at sealing it before others. 

To solve this issue permanently, the recommendation was to add a new shut off valve in the unfinished basement area by where the water meter is and then seal the ceiling up permanently.

Regarding Smoke (and CO2), I'm sure code varies but in Milwaukee if you install a new unit it has to be one of the 10 year sealed units.  

A good bleach scrub, pressure wash and stain or seal the deck will take care of the problem.

What that would do, is it would seal the deal, and eliminate all of his out clauses before you are forced to get a renter. 

Recommend sealing to avoid possible moisture damage. 

Last year I bought a house from a tax forclosure action, to my surprize some of the counties around here have sealed bids.