This simple step would have saved me months of my life and thousands of dollars.

Hopefully, you'll also get the "walk through checklist" - in the event this tenant left the property in "less-than-similar" condition to when moving in (Note: You cannot deduct for "normal wear and tear.")  

.- My goal is to follow Scott Trench's ideas in Set for Life and hopefully rent a room for under $1200/month to save some extra cash and use it along with my current savings to buy and house hack a duplex/triplex/fourplex in 4-12 months in the Oakland/Emeryville area.- I consider myself very handy since I have renovated my entire house 99% by myself and pulled permits. 

They were always barely with their heads above water so I assumed they would be life long renters.

Life happens, when I started as a realtor on 2009, I had a newborn kid and it was very hard to me to keep up with my investment business.

However, this new buyer is threatening to get attorneys involved because he seems to think that this is not a encroachment granted in perpetuity.I think my folks are in the clear on this due to the nature of the language in the agreement but the last thing I want to have happen is get lawyers involved and have them have to pay to move the tank since, technically speaking, they are in the wrong.Don't have any experience/advice in this matter?

Change your paradigm and change your life!!!! 

This was sent out within the 30-day period.The tenant contacted us disputing the charges and threatening to sue for 2x the original deposit, which was $1750.My questions are: If we lose, what is our maximum liability?

Sorry if I am coming off wrong it is just how I evaluate things, I have not ever needed insurance in my life for car or house etc so I was actually looking for insight that I do not have.

The buyer is threatening to undo the sale or claim for damages as they were not disclosed of the new leases.Do you guys have any opinion on this case?