If the dogs continue barking even once they're familiar with the situation, and they're doing it early in the morning or late at night and their owner's aren't doing anything about it, then you might consider making a noise violation complaint and maybe the governing body will issue a citation and put pressure on them to remedy the issue.

Nothing to cancel a deal over but you could say something like “this efflorescence is a sign the exterior waterproofing is insufficient for the hydrostatic pressure of ground water in the area - we are going to need a sellers concession equal to the value of the middle of three independent quotes for remedy” - so just use it to get cheaper price.

What all should I expect to be done when remediation takes place coverage from insurance?

(aka: Phase 1, Phase 2, Remediation,...)If you can post a photo I can help you decipher when it would need to be renewed.Speak soon,Jon

The cost of the Kilz is the remediation to this lease violation.

I have paid him 60% of the job already up front.Give him a chance to remedy his mess?

It's small remedies, but it is remedies.

If they don't then you will hire another team and have them complete the work and then charge AIG  for the difference (this is your remedy - you may have to sue in JP Court - but that's another story).  

It is always less costly to take preventative action on your schedule, than remediation at the peak of the season.

Whether they agree will depend on how motivated the seller is and how solid of a buyer you appear to be, but I requested this on my very first purchase and got it.To @James Maradits' point above, if the seller represents the contracts as month-to-month and they turn out to be different, I would think this is fraud that would allow you to cancel the contract or seek some other remedy (not legal advice - consult a lawyer!).