To me DD is should be done within X days of executed contract but BEFORE approval time, BUT I have to say that language is GENIOUS on the buyer side.

The original seller also execute a special warranty deed subject to the full payment under the CFD, but a new obligation would be much easier.Any way you do it, I'd first try to get the cooperation of the first seller to modify that CFD to a note and deed of trust or special security agreement/DOT.

Do you have an executed earnest money contract on the property?

This should take a couple weeks and the executive director will get a letter of inquiry or a phone call to motivate him/her.

A gift letter will be required to be executed.

What things can potentially cause a deal to go from pending to canceled between executing the effective date of the contract and closing?

They can also execute a General POA to sign any document with their name.

The defect list could be 20 pages long with an asset like this and the tactic just takes this all off the table as any further negotiation once the contract is executed.

The key is to have it in writing and agreed to prior to execution of the lease and to have the "conditions" explicitly detailed in the amendment and recorder at the time of the showing.

Are you willing to front your borrower cash to purchase and execute the note and DOT after the purchase escrow?