I take it one step further and have them sign a "house rules acknowledgement" form that they have read the rules.

Maybe you are right that I shouldn't even acknowledge it.

If you want to be a residential agent, Keller-Williams is generally acknowledged to provide among the best training.  

You have to acknowledge FHA is for purchasing homes to be lived in, with no surprises typically that strap the new homeowner right off the bat or within the first 2 years of occupancy.The cost of this, also means you are usually not getting these home at any real discount because "the home must meet minimum standards.The alternative is searching for and purchasing a home using an FHA 203k loan, that must be worked on, that does not require the seller to make modifications prior to sale, and often are homes over looked by many other buyers.

My success rate is very high but I know what I am doing.Here is a Sellers Acknowledgement to take ideas from. 

Wake County acknowledges and adheres to these definitions and the direction provided in N.C.G.S 132-1.

The first goal is to acknowledge that a simple monetary pur,hase will not make you happy.    

Additional Terms: Optionee:__________________________________ Date:____________________Optionor:__________________________________ Date:____________________ASSIGNMENT OF OPTION OF REAL ESTATE PURCHASE AND SALE AGREEMENTTHIS ASSIGNMENT is made this day of , by(hereinafter referred to as "Assignor") to(hereinafter referred to as "Assignee").WHEREAS, Assignor has entered into a certain Real Estate Purchase and Sale Agreement withas "Seller" and Assignor as "Buyer" which Agreement wasexecuted on , by said Assignor and said Seller for the purchase and sale ofcertain real property being, lying and situate in Parish, in the state of Louisiana, and more particularly described in said Agreement, copy of said Agreement being attached hereto; and,WHEREAS, Assignor desires to assign, transfer, sell and convey to Assignee all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement; and,WHEREAS, Assignee is desirous of receiving all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement;NOW, THEREFORE, for and in consideration of the sum of and other good and valuable considerations, the sufficiency of which is hereby acknowledged, Assignor has assigned, transferred, sold and conveyed and by these presents does hereby assign, transfer, sell and convey unto Assignee all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement.

Is this actually better handled as a sublease and should we void the addendum and instead sign some sort of sublease acknowledgement and send that to the prior tenants?

I will need to see the exact search and get all the relevant information, but if there is any chance that the parents died, you can simply acknowledge this possibility to the Department of Revenue, offer to pay the potential overdue taxes, and get a certificate.