Again if you can prove me wrong do it.  

However, just because he has a personal interest, it doesn't mean there is a conflict or any wrongdoing.

I would cheer the IRS finding wrongdoing.

Do I have enough to fund a major repair if something goes wrong? 

If I am 100% wrong, do you have a precedent in Texas where this is the case ?

But in 99% of the cases its just owners wanting a free ride and turning the tables on the banks.. accusing them of wrong doing by even loaning them the money in the first place...

If nothing is wrong, do I just send whatever receipt for the inspection?

I want to learn as much as i could but I dont want to come off wrong.

Learn wrong, do wrong!

Agents can absolutely be paid by other agents and split commissions, fees or commissions or any combination as may be agreed, an agent can pay another agent without any disclosure as an inner-office deal, the transaction closes with the broker, not really the agent and then agents are paid.As this was initially brought up, there were other issues as well, but notice I said way up the "apparent violation" as we don'y really know if the is any wrong doing, we assume there can be and we can see the potential, but we don't know for sure which is why the state should look at the deal and allow the authorities to act, not us.I would think with the assurances mentioned, the broker being involved, the bank being informed and disclosures made at closing, everything should be fine.