My Broker and I are real estate agents/brokers only in the narrowest sense of the term - he is a real estate attorney and investor and I'm an investor using my license to acquire/dispose of my own investments.  

Includes removing and disposing of existing equipment and refrigerant per EPA requirements.

The point being is that this is an example of banks throwing their weight around for additional protection and reducing risks that they have jistorically accepted in disposing of other collateral, they don't like they fact that so much money is being made from their lack of oversight, management and adminstration, they will accept profits from actual work and improvements being done, but not simply from them being inept.

If you did not include every item, the pricing would work out to less than minimum wage.We would have to include for things like masking, removing and resetting fixtures, removing and resetting furniture, cleaning, wall protection, floor protection, caulking, disposal etc.

Agent should have put out on the grass and then put the butt in their pocket to dispose of properly.

If you provide something with a property, you're stuck repairing or replacing it.While only one state that I know (Arizona) of requires A/C if you *don't* provide it upfront (you did), you're stuck repairing it since it came with the property.That's why some landlords prefer to remove *everything* they can from a rental so they don't have to repair it if it breaks: washer/dryer, ceiling fans, window A/C units in mild climates, garage doors, pools, fireplaces, dishwashers, disposals, and anything else that can break.

There is a wealth of knowledge here and people at your disposal that have done exactly what you are looking to do.I would read as much as possible, connect with people on this site, and hit local REIA meetings when time permits.Have fun!

Don't forget to use those great VA loans at your disposal.

If this is not the case, what recourse would the lender have at their disposal to take back control of the property?

You have the expert knowledge and experience here in the forums at your disposal!!!