If your offer is made in bad faith though, I could see a seller being upset and tying up your EMD.  

This is precisely the reason why I'm upset with Intuit, because you're right, had I known this before I could have stopped that tenant from paying through Intuit.Indeed, companies aren't perfect, but typically, when they make a mistake, they go out of their way to fix it manually, Intuit didn't go the extra mile.

My vote is for my hero, @Ben Leybovich even though I'm upset about having to wait for CFFU to start accepting new students again!

But I'm upset with the fact that he sells MLM as if it's true entrepreneurship.  

Any advice you can give because I know this couple is going to be upset if they don't receive all of their money back.

These folks did not know where to draw the line on common sense issues and big issues IE some little maintenance call  they think the tenant should pay.. the tenant as you state is scrimping pennies they are not going to pay it... landlord gets all up set blames management ... tenant takes their voucher and moves and landlord has vacant house when landlord being shortsighted if they would have paid the 100 bucks they would not have lost thousands in a turn over and vacancy..

I should add that we are quite upset b/c due to the length of time to get the CO we won't be able to do a double closing and now we will have to pay holding costs.

@Debra Muth,Congratulations on taking action, that is a victory in itself.  

As my dad normally preaches to us "Learn from your victory. proper from your failure."

He was upset he only made a $1,000 but he made 10% in less than 6 months.