We are a small community and she has been pressured to drop the issue by the management company and board.I feel the way our management company has handled this situation could have left us open for a huge lawsuit.

BP,I came across the following news article at: http://thinkprogress.org/justice/2015/04/02/364225...In summary, a Wisconsin landlord is holding a young tenant liable for the cleanup of bio-HAZMAT from when the police shot and killed a friend of the tenant who was staying at the apartment.I'm curious for BP's thoughts on what is the correct way to handle this situation.

It does work and there are other ways I could have handled some situations with buyers over the phone that could probably given me another deal or two but that only comes with experience.

What this tells me though is that the mold issue (if handled properly and purchased at the right price) is not the end of the world so to speak.

I'm looking for different solutions on how to handle this unique situation.A friend of mine purchased a house with her husband back in 2009.

You seem to have a good handle on how responsible she is so personally I would not worry as much about financials as I would about the relationship end. 

That, we can handle.

I also use Quickbooks to handle the books for my S Corp which handles my fix/flip operation and other real estate activities.  

How do I handle this if the agent won't present the offer without a "good faith" or "earnest money" deposit?

I had one walk out because they didn't like where the closet handles were placed.