If they refuse you will likely need a lawyer.

You could have a lawyer review it, or tone it down to only include the doctor note.  

I'd say keep things simple for your first property in the short term - close on the property as an individual, do more research and understand the nuances of what an LLC could/would do for you (by talking to an accountant/lawyer that understands your specific situation), and go from there.

I just listened to a presentation in which a lawyer (SDIRA expert) said that you cannot perform physical work on your own rental properties held by your self-directed IRA. 

I have a Private lender that is a friend and we write it up with a lawyer giving him first position and less than 75% LTV.  

If he hasn't dropped an EMD, you have no contract.Even if he has, the contract price is the contract price unless you both mutually agree to a different contract.FYI, I'm not a lawyer, so you may want to run this buyer your title company.If it was me, I would kick that buyer to the curb, if he hasn't dropped their EMD.As for me I give buyers 3 business days to deposit and EMD, or it goes to another buyer.

I'm not a lawyer so take my opinion as it is. 

Like I said not a lawyer or even in your area, but I think you may lose this one.

Take pictures to explain the situation to the lawyer.

The only other cost (other than taxes) was my lawyer ($700).