It must be under the owner occupants name and they are legally required to live there.

A realtor keeps contacting me with potential tenants, what is the proper/legal way to turn them down if I don't want to give referral fee?

@Patrick Philip  Most realtors opinions are **** and they cannot be held accountable legally when you make financial decisions based on their advice.  

Has anyone heard of a legal precedent like that? 

You may be able to find this online (state/local government websites would be only credible source I'd trust; although, your licensed agent may be able to help.)  

I assume I can easily NOT renew a lease if I am moving into the unit as owner occupied and the tenants shouldn't be able to fight it.Thanks for all advice and anyone who would like to connect online or in person for a drink and to talk REI.Scott

He seems to be trying to bull his way through the situation and force my folks to move the tank based on his interpretations of the legal technicalities rather than trying to negotiate.

You know, because, Cleveland:)I would recommend having whoever your local guide is, both show you some property you have pre-screened online, and also have them show you some they have selected.  

Do not rely on it as legal advice.

People in Houston didn't have flood insurance because just as you said "not sure there is much of a risk"my house was flooded in NC during hurricane Matthew last year, not in a flood zone because "not sure there is much of a risk"If there is no mortgage, I don't believe you need insurance legally, whether or not you get it is 100% up to you.