I just received an inspection report for a home I have under contract in Kansas City and there were some potential problems identified with the foundation. 

When you say uncooperative to help does that mean they have received a written denial?

What are the bare minimum requirements I should request in a written agreement/legal document with this individual to best protect my asset in case his investment fails or falls short.

Option 1: I will receive only the rehab, hiring a contractor and ask the buyer to pay the property direct to the ownerOption 2: I will receive full payment (property+rehab) and my company buys the property a resell it shortly to the buyer

You will sign documents and affidavits that you are swearing to that you will live there.

All of the heirs will receive the property at a stepped up basis so she should be able to sell her share immediately with no tax consequences. 

I don’t see anything in my contract about who pays this tax nor have I received the settlement statement for closing next week so that’s a new concern of mine.

Be sure to document all communications, transactions, etc. with the neighbor as you may need them later in your counter-claim or for court.

They will be receiving nothing during that whole foreclosure process. 

I receive it back from the agent with his signature only - no broker signature.