Labor or permit remedy-That has to do with architect, plans....

There is probably a clause titled "Defaults and Remedies" In my area contracts typically say if the buyer defaults the seller's sole recourse is to keep the EMD as liquidated damages. 

Remediating soil contaminated with fuel is very expensive and you are buying that liablity.  

The FHA says that examples of such problems include but are not limited to the following: Missing handrailsCracked or damaged exit doors that are otherwise operableCracked window glassDefective paint surfaces in homes constructed post-1978 (because of lead paint hazards)Minor plumbing leaks (such as dripping faucets)Defective floor finishes or coverings (worn through the finish, badly soiled carpeting)Evidence of previous (non-active) wood-destroying insect/organism damage where there is no evidence of unrepaired structural damageRotten or worn-out counter topsDamaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978Poor workmanshipTrip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)Crawl spaces with debris and trashLack of an all-weather driveway surface=================There are many areas, however, where the FHA does require problems to be remedied in order for the sale to close.Electrical and Heating The electrical box should not have any frayed or exposed wires.All habitable rooms must have a functioning heat source (except in a few select cities with mild winters).Roofs and Attics The roofing must keep moisture out.The roofing must be expected to last for at least two more years.The appraiser must inspect the attic for evidence of possible roof problems.The roof cannot have more than three layers of roofing.If the inspection reveals the need for roof repairs and the roof already has three or more layers of roofing, the FHA requires a new roof.Water HeatersThe water heater must meet local building codes and must convey with the property.Hazards and NuisancesA number of conditions fall under this category.

I did a full tearout of the kitchen ceiling and remediated all the water damage.

I have them wait in their car and tell them I'll let them know if there are any problems and they can have a chance to remedy.

I said I want to first want to be able to verify credentials but would prefer a water remediation specialist to do the inspection. 

So I received a violation notice from the city of Royal Oak, Mi for not having my rental registered (shame on me) and as a part of remediating, I need to have an inspection.

Once it gets that bad it’s almost impossible to remedy without gutting it down to the studs.

Eviction is the only remedy.