Tenant-Buyer can record the L/O as a deed the next day after signing without your permission. 

Those funds are the seller's guarantee that the buyer is going to follow through on the contract, unless one of the permissible contingencies comes into play (i.e. fails inspection, offer depends on financing, there is a lien on the title, etc).

I know i need to approach the owner/landlord for permission to negotiate a short sale ..i'm just not sure when the right time would be..now or if i see his fight to save his home fail and see the foreclosure going forward.

Without the contract, she stated there is no way to prove that inspections were required or if they could change the rental amount without my knowledge or permission or even if property manager #1 had to provide additional notice before the sale. 

i'd be in trouble if negative votes were permissible...

They never asked permission to move on another person let alone rent $.

(Which is a legally permissible lease term for where we operate)In your case, though, it's hard to say whether or not she'd have a leg to stand on in court making such claims.

I asked their permission to post the article and they allowed me to post this link to their article: http://dornish.net/a-matter-of-trust .

I would not rent to you as "B" simply because I do not have permission to rent in out spelled out in my purchase agreement with "A".

Not sure what's permissible in Kenneth's state of Texas.