Since I do not have a "ZIP code" it is quite understandable the BP-machine would be unable to verify it :-) ... so, @Brandon Turner & @Joshua Dorkin the moment's passed ... looks like I'm off the hook.

NOT UNDER THE INFLUENCE: I am not now under the influence of alcohol or any other mind-altering substance, nor am I taking medication that would cloud my judgment or make me unable to think clearly. ________ 20.

I have a realtor that told me that I am unable to sell my home unless all violation (nuisance lien) is taking care of which total up to $3200.

Was it an owner/occupant situation where they moved or were transferred and unable to sell it? 

@Paul Choate Point #1:My objection is not that the general population of users would be unable to sort out the issues here, but that a new investor might consider the source (BP official blog) and not SEE the issues. 

If for some reason you were unable to cover a loan when it becomes due and someone looks at these transactions closely they could possibly make a case for fraud.  

But when Vanguard sent the 1099-R, it didn't specify my cost basis but rather checked the box that said unable to determine if taxable. 

A Technical Advice Memorandum 8328011 supposedly describes this treatment of security deposits, although I have been unable to locate and read this document for myself.

By assuming that you are fleecing the seller, you are also assuming that the seller is a stupid or ignorant person, unable to function in a voluntary market, in need of a guardian to protect their own interests.

All of these comments have merit, when we make offers to re-sell the property we are contracting for (flipping), it is important to write specials disclosures and clauses in your offer in order to be safe and legal.My real estate business would die if I were unable to control and roll real estate at a profit, also known as flipping.