It will set out the "penalties" if you do not close.

Should I increase their rent and include lawn maintenance or have penalties when they don't keep it mowed?

@Alicia Hensley  not the case what you have is laws that WA and OR passed about 5 years ago that relate to buying a property in Foreclosure.. they are anti equity skimming laws. and there are HARSH penalties .. you would be best served to understand the laws prior to engaging in this activity. .DO NOT take anyone on a website forum like BP's advice as gospel... they are not the ones who will have to answer to the authorities you will. 

YUP  just like Oregon and WAshington  since this was a primary residence and they were in foreclosure there are very strict laws one must follow.. and the penalties are severe to the point of a felony I believe..

It allows you to terminate the transaction without penalties (subject to the specific terms of your contract and the exact reason you were unable to secure a loan).A second loan-related contractual contingency is the appraisal contingency:The appraisal is actually ordered by your lender for the lender’s benefit, even though you’re paying for it.

Very powerful tool and right now a withdraw not a loan even more so: covid related economic injury and you have no penalty on withdrawal and 3 years to pay the taxes....cardule though, like most powerful tools it can pack a hell of a kick if used carelessly :)

Funding in 1-2 weeks easily, no appraisal or up front costs, and no prepayment penalties or minimum interest so pay it off with the construction loan any time. 

The penalty for mortgage occupancy fraud is severe.

There also is a double penalty if you commit to renting to new tenant on specific date, and then are not able to complete needed work and/or the tenant does not make it out on time.

The fines and penalties for you would be severe.