owner occupant fannie mae property

[Rich Hupper]

Anyone have experience with REOs where the current owner fannie mae requires all prospective buyers sign an occupancy rider? I came across one recently where the rider requires the buyer to take occupancy within 60 days after close however the property is uninhabitable. It has mold and nothing works. No one is even allowed inside. I feel like it would take more than 60 days to get the property ready. Additionally the listing agent says there will be a deed restriction where the buyer cannot sell the property within a year after closing. If they do legal actions will be taken. I am just confused how fannie mae would police this? Do they periodically check the registry of deeds for deed transfers? 

Thanks