This would only be valid if the owner of the property was still living in the property when you bought it and they themselves were the tenant. 

The list you mentioned are all valid numbers for total cost of the property, but not the total cost to the REI. 

If you don't have a warranty deed with title insurance you'll have to play ball with these guys.

Here’s a simplified breakdown:Lease Agreement: Since your buddy signed a 12-month lease in July '24, he is legally protected until the end of the lease term unless the lease has specific clauses allowing early termination under certain conditions.No New Lease Signed: Since no new lease was signed for the new home and no formal agreement was made, the original lease terms for the townhouse still apply.Landlord’s Request: If the landlord wants to break the lease or has changed their mind about the swap, they would typically need a valid reason, like a breach of lease terms, or might need to negotiate an agreement with your buddy (buy out)Legal Advice: Your buddy might consider consulting a local attorney or legal aid service for advice on his specific situation.

So my 'spidey senses' start to tingle when you tell us these things and it makes me want to question the validity of the lender.  

In my experience, after the sale on the courthouse steps, the Clerk or the Sheriff gives a Certificate of Title or Sherriff's deed, without warranties, to the highest bidder. 

Do you know anything about the validity of that? 

@Mason Hickman- valid points, wife loves doing the decretive fancy stuff, so that’s my plan for now.

The only potential problem is a very old and changing interpretation of the validity of doing this when performing a 1031 exchange. 

Secondly, make sure you can obtain a warranty for the installation.