My focus would be on spending all of your spare time in learning about the different investment options, the real estate segments you might be interested in and understanding the trends in each.

As a result, they have been able to purchase on the ground floor of a rising market sub-segment.

Some might consider this a distinction without a difference, however, violation of MLS or NAR rules is not the same as "illegal." 

Their distinction is that you get an actual deed to the real estate. 

This could be an area where I'm missing an important distinction. 2) The contingency would already be built in to the $25k at 20%.

Lead paint has a distinctive flaking pattern compared to modern paints. 

You want the distinction of an 'Option Fee' from a 'Down Payment'.

This segment of the market is *extremely* seasonal, and is generally is hit the hardest in December and Mid-Summer.

"lie with intent" is the distinction of course, I think by anyone standards legal or not, it would be wrong to lie with intent but with that said, proving illegal?

An important distinction.