I always appreciate advice, but after consulting several local Realtors they all seem to agree that when an offer is presented to a bank their procedure is simply not to take a deposit till after a bid is accepted.When it comes to private sale offers you are all right in that a deposit can possibly be tendered.Those are the facts in my area.

You want to close whatever "loophole" found in the screening process that allowed for such a tenant to be approved.If the PM placed this tenant, you might seriously consider interviewing other PM companies to hopefully identify one that has a handle on better screening procedures.

As an Accredited Investor, every investment offer I have ever seen has always had this defined mechanism and procedure in the investment of when an investor can call on funds, and I have never seen anything of at-will, ever.

I wasn't even clear at the beginning about what the testing procedure was or how the mitigation effort would go if it was needed.

Sometimes that's okay if there's enough "profit" margin in the repairs.There are rigorous procedures and time limits if the former owner wants to redeem, otherwise you forfeit the right to be paid for those repairs. 

Procedures for improvement payments upon redemption have changed.

Could be beneficial for you to circumvent these procedures, but i would never recommend it as it opens you up to much more risk. 

Same procedure enter in date range, then click submit. 

IF you choose to use this property for "short term" or "seasonal rentals" AND wish to have some personal use time, please refer to IRS Revenue Procedure 2008:16 and discuss it thoroughly with your CPA.4.

Put systems and procedures in place where you can.