My last offer for $85k was rejected, the property is in a generally good state, might need a new roof in a few years with approximately $5k in immediate repairs.

Now that isn't to say there weren't some I didn't close on, or reject outright, because there are lots of less than fully competent or trustworthy providers out there. 

We are all trying to buy cheap, so we should expect offers and bids rejected if there is something better for the seller on the horizon.

Do his sister a favour and reject him asap.I would have a bad feeling he might do a DWI drive by shooting, that is reason enough for me to reject.  

After reading through the forum I concluded the same, the other buyers offer for $625,000 was as high as someone should bid but it was rejected.

Are you saying that you routinely reject guests? 

I rejected his nonsense and he keeps writing to us, stating they want to use a realtor.

While transaction fees, that agents attempt to shift to the buyer/seller (and they should be on low dollar deals) are common, that should definitely be discussed and agreed to/rejected up front.

If the seller is represented by a lawyer they will probably reject any addendum not written by a lawyer.As an agent in IL it is illegal for me to even scratch something out on the offer  because I am not a licensed attorney. 

So it looks like he has 2 causes to cancel contract, 1) Seller cannot deliver Marketable Title and 2) Bank rejected the Application due to length of time.While he can't actually buy anything because his deposit is locked up, he needs to see what is available so he can make a decision on if he should stay in this prolonged Contract or cancel it and go on to another property.So he wants to submit a non-binding offer to purchase but cannot go into contract because he has no money for a down payment until the previous down payment is returned.HOWEVER, it seems as if the original Seller's Attorney wants to use this to claim Breach of Contract?!