It you communicate your rental criteria to prospective tenants in advance before accepting an application and application fee (required in Washington State), you would not run into this problem.It's perfectly fine to reject an application or approve it with conditions based on legal rental criteria.You may want to use a standard form, such as an "Adverse Action Notice".Here's some information from the one we use:----------ADVERSE ACTION NOTICEApplicant name ____________Applicant mailing address ___________This notice is to inform you that your application to rent the property located at ______________  has been:[] Rejected[] Approved with conditions:[] Residency requires an increased monthly rent of $_____[] Residency requires increased [] fee or [] deposit of $ _____[] Residency requires last month’s rent[] Residency requires a qualified guarantor[] Other requirementAdverse action on your application was based on one or more of the following:[] Information contained in a consumer credit report *[] The consumer credit report did not contain sufficient information *[] Information received in a criminal record[] Information received in a civil record[] Information received from references[] Information received from previous rental history or reference[] Information received from employment verification[] Inaccurate, false, or misleading statements or missing critical information on the application*If you were rejected based on a consumer credit report, you can request a copy of your credit report for free from the below-checked agency.[] Experian[] Equifax[] TransunionDated this day of ________.Agent/Owner Signature _________

Is this legal for me to have to pay all of these costs when neither I nor the person living in my unit caused this problem.

Many members are experts in their respective fields related to real estate investing, whether that is real estate brokerage, wholesaling, flipping, buy and hold, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.The site has quite a few tools that can be helpful for new members.

You should ask your real estate agent what the potential legal ramifications might be, before you do anything rash.

Other states almost make it necessary to involve legal services.

You'll get a better response if you repost this in the legal question section of BP..

The benefit of the land trust is that you do not violate the Due on Sale Clause, so it doesn’t flag your transfer like the same way transferring the property directly into an LLC would.This isn't legal advice, but just my personal opinion.

I am trying to learn all I can I am literally spending hours upon hours of research each day for the past few months trying to educate my self on the legal aspect etc.

@Mindy Jensen where's my virtual cork-board ;-) ), but here are some alternatives to get you started:Douglas Gray's "The Canadian Landlord's Guide" is a good starting volume.Steve Cohen and George Dube's "Legal, Tax and Accounting Strategies for the Canadian Real Estate Investor" is a must-have overview of how you buy, own, and dispose of your real estate and the implications of different strategies.    

“Notice Of Sale” is published in Some legal publication/newspaper, and usually recorded......21-30 days before the sale, depending on the jurisdiction.