Bigger question beyond the security issue: "Is he getting compensation in rent for live-in status?" 

What disclosure must she make about her status as a real estate agent?

Both people are not a protected minority or a family status.  

You can get a guest pass to it on their website.  

It has to be someone that is actually treating them.A landlord specifically needs to be careful of people who are misrepresenting a condition or status of the animal to get their dog into the home for free.

to be a popular place for guests and investor competition so you can do better by dominating the niche you select.  

Good info here, but wanted to add if your building is on higher ground, research the process for a LOMA, letter of map amendment, that may change your status.  

I looked up what a cancelled status on the MLS means and one article states: "a cancelled listing is completely terminated on the agreed upon date and time between the seller and the listingagent/broker." 

I tried to rent it to my brother in law and have us as his house guests in the mean time while i find a SFH but the hoa says the owner can not occupy the home and be on the renters list.

Even though you may have a contract and thus the first right of refusal, I am sure you do not have the status of an equitable owner - - your EMD is a condition for the contract and that's all.