He is already dictating to you the tone of how the business relationship will go.If he switched the utilities into his name to start Sept 29, that's his problem......especially when you made it clear the lease starts Oct. 1.    

A few companies book rooms at motels and dictate that their employees stay there. 

Do not pay and do not let them dictate your decisions.

And if it were commercial, then Dodd/Frank which dictates how mortgage brokers can be paid would not apply.

As other posters have mentioned, the Kansas State law would likely dictate. 

I'd rather not have congress dictate when I can have my money. 

Don't let their emotions dictate your decisions.

Because yes, people from all walks of life have tattoo's and it doesn't necessarily dictate the type of person they are (although the Aryan twins....).and I would have to agree @Patrick L.

Not to mention, if they balk at this, you've done what you can do and now the market will dictate where they live next. 

In my experience usually the subdivision of that home will dictate what you should do especially when looking at future value.