Thank you for the acknowledgement, excited to be a participant.

This property is within the family Do you agree that, once you take it on, while acknowledging their discount, their say in what you do with it thereafter, ceases forthwith?

He acknowledged he knew FMR is $3k, but he couldn't afford to pay that amount.

If inspection report does not say anything, can I assume it is not a legal issue and I can just politely acknowledge their problems without committing anything in return?

AFFIDAVIT OF OCCUPANCYApplicant(s) hereby certify and acknowledge that, upon taking title to the real property described above, their occupancy status will be as follows:Primary Residence - Applicant(s)shall occupy, establish, and use the Property as Applicant(s) principal residence within 60 days after closing and shall continue to occupy the Property as Applicant(s) principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.

However, when I do, I still document it in writing and state specifically that it was a one time exception as a courtesy and does not change the terms in lease in any manner whatsoever and that they acknowledge that fact. 

The buyer gets that amount by default if material misrepresentations by the seller.I am sure they will not like that either.I tell sellers if I can't validate the income stream for paying XXXX price then I have to reduce my offer to cover unknowns you are not willing to verify with the property.If the seller doesn't acknowledge that they are looking for a sucker buyer to pay a premium for their problems and you need to move on.

I acknowledge that my feelings on this subject make me a bad client.  

Relo company said ok and ordered their own inspections and gave them to me to basically "acknowledge"  I'm not signing away any rights.  

They are written something to the tune that specifies that you've acknowledged you owe tax and will correspondingly pay the tax with your returns.