If seller backs out your remedy is filing a lis pendens, preventing he/she from selling to anyone.

@Danny Duran (my client) and I were in a situation where the mold test during the inspection period determined there were high levels of airborne stachybotrys (toxic black mold) and the seller refused to let the remediation estimators in because they had to wear a mask.  

This property qualified for a lead paint removal program from the county and I not only had the lead paint remediated by a professional for FREE!

On #2, if there are mandatory capital calls and one party defaults, what are the remedies of the default - i.e. is there dilution? 

I do agree, however, that if you can remedy this, you could potentially add value to the property (lower expenses means higher NOI means higher value at same market CAP rate).However, one thing to keep in mind: You can not expect to get the same rents once you transfer the utility expense to the tenants.

You'll have to give notice to cure to get them to be sure they remedy the damage.

Effective Date: 11-25-1969 5313.08 Action for forfeiture and restitution.If the contract has been in effect for less than five years, in addition to any other remedies provided by law and after the expiration of the periods prescribed by sections 5313.05 and 5313.06 of the Revised Code, if the vendee is still in default of any payment the vendor may bring an action for forfeiture of the vendee's rights in the land installment contract and for restitution of his property under Chapter 1923. of the Revised Code.

The hardest item to overcome though is pollution and toxic waste remediation.

Find a small remediation company to do the demo and mold remediation only and they will do it for you at a fraction of what they would charge insurance companies.

As a result, you have no real remedies.