BP, 

 I've got a signed contract on a duplex in a nice neighborhood...nice except for one house.  The house next door is heavily distressed and a lady lives there with her daughter.  While I was viewing the house with the seller, the neighbor lady walked right in the front door and started yelling about people parking in "her" driveway and said she wasn't happy with us (the seller and I) talking rudely to her daughter.  The seller walked outside with the neighbor and showed her the survey markings but the neighbor still contested.  After she dropped some expletives and the seller said she should leave, she left.  The seller apologized and showed me the survey markings and property line that clearly shows that the driveway is completely on the seller's property, the neighbors just use is to exit the street and park half on the driveway and half in their yard.  I worked that into my offer.

My first thought was to get a fresh survey done and put up a privacy fence.

The seller also told me the neighbor had previously asked to buy the property to move her mother into.  When the seller told her their asking price, she complained that it was too expensive and they should lower the price because they couldn't afford it.

Now we are closing next week and the appraiser and my loan officer visited the house this morning and called me saying the neighbor approached them and started asking questions about what they were doing and telling them there were terrible foundation issues with the house.  They said she wasn't mean but that's still not cool.

The seller said that the tenants haven't reported any trouble with the neighbor in the 7 years they have owned the property but the neighbor seems to badger the seller when she comes to visit the property.

I'm asking for suggestions on how to fix this problem (hopefully passively) or if this is something that is a deal breaker.  Maybe those are questions I need to answer but I'm open to any help or helpful tips.

Thanks,

Trent