She is a former lawyer for the FBI, and is very high-maintenance, and honestly scares me.

The owner of the title company( a lawyer), is stating that the estate should be responsible for any loss the title company has to transfer from the original buyers to the right of first refusal party($3500 in improvements). 

We still have the tenant (7 years now, maybe 5 years after evicting the brother).I am not a lawyer, so take it for what it is worth.Good luck to your "friend" :=)

First you need to learn your state landlord tenant regulations or hire a lawyer with landlord tenant experience.Give them notice to terminate their lease and have them move out.

I am her durable PoA, but her lawyer, who is my lawyer now too, said that this would be prudent.

Get a good lawyer, it's not that hard. 

From an economic standpoint, no lawyer will take this case on a contingency basis because the damages are too low.

Do use a lawyer to draw this up and close with them if possible in your state.

It doesn't hurt that he is a trained lawyer and will also be more knowledgable and be able to navigate tenant / vs landlord issues better than most. 

(i.e. paid the lawyer a retainer and had all future contact through the lawyer, instead of directly. proactive instead of retroactive)Also, she's asking for a copy of the report.