Since she is a dual agent, maybe try an appointment with her managing broker, bring a letter in writing and be prepared to discuss that you felt you were pressured into making the offer with the high earnest money deposit and no contingencies (especially if that was the agent's idea and not yours) and that you feel the agent should have pointed out the high-power wires so close to the property (although since they are right there, you probably should have noticed them yourself so not the best excuse), that apparently there were many offers so the seller should not have much trouble selling to someone else quickly and that you want the contract released with your full deposit back due to feeling like you were not represented to your satisfaction and didn't really understand that she was not representing your interests.  

They offered to extend her access for 30 days.

That equals $2400 you should set aside per year to pay the mortgage in case you have to fix up a unit for an extended period of time or if you simply can't find a tenant that matches your screening requirements.

Any sort of disturbance, like sanding paint or sawing fiberboard that contains asbestos, will release the fibers into the air in your home.If the asbestos product is in good shape, or used in an out-of-the-way area -- for example, as insulation for heating or plumbing pipes in your crawlspace or attic -- you may be better off leaving the asbestos in place.Source: http://home.howstuffworks.com/home-improvement/hou...

Assuming I'm going to rent to them, would it make more sense to send them a traditional one-year lease, or just make it a five-month lease with a possibility of extending it after the New Year if payments are timely and there are no other issues going on?

.- I was also asked to sign a release of funds from the earnings for payment of July 2017 Mortgage.

This generally releases people from the liability of mistakes in advertising the property.

She knows we still want to sell it in the next year, so she offered to waive the rental fee if we sign a contract that extends another year. 

She has told me they are willing to release their claim on their 50% stake of home for $1.5k each.My Purchase price: $55kRental income 10 months x $650/month = $6.5k2015 Taxes $2,254Insurance :$1,500I sell back to her for $66.5kProfit: $18kNet Profit: $14kIs this a good deal or too risky?

A few days later we sent thru our request and they wont budge.There are a few days left on the inspection period and the seller has twice asked us to send docs releasing them from the contract so they can proceed with another deal.