I'd keep looking for deals like you've been doing and keep chugging along.Regarding the 80/20, the best explanation is in podcast 217 with Perry Marshall.

@Ned JacksonVery well though out explanation related to my concerns and how there is no reason not to provide the inspection report.Thanks!

@Dave Toelkes did a good job with his explanation. 3.

Talk to the Association and see if they will work with you instead of just paying half with no explanation.

I would really appreciate any explanations of this situation.

It is very important that you have a clear, cogent, non-emotional explanation to give your attorney. 

There is a longer explanation involved than a post here.

If not, a simple explanation wilI'd suggest using NWMLS forms so that the escrow agent knows it's official documentation -  Form 21, (Residential PS Agreement) and Form 32 (Assignment of Buyer's Interest). 

That's quite a large decrease especially considering that $1 in 1982 would have the purchasing power of about $3 in today's market.One explanation could be that Interest rates were artificially low for a long time (until recently) which may have diminished the need for seller financing. 

I really enjoyed how you broke this down with good examples and explanations.