Valuations in real estate and the equity markets, as well as people's access to cheap capital, are all being propped higher by the excess liquidity in the market.

I think it may be fair to say that this excess in supply is being pent up in vacancies with the over built condo markets, such as Toronto's, as is pointed out in the Maclean's article.  

That realtor said the fee for screening would be a third of a months rent, which I'd pass on to the exiting tenant.The tenant feels this amount is excessive and asked if it would be acceptable for her to locate a different local realtor to do the screening, assuming another would change a substantially lower fee.So my questions are:1.

If there are several lending, it becomes more complicated so you should really see an attorney.The loan made simply includes the purchase price, settlement costs and excess amounts would be disbursed to you at settlement.

For excessive dirtiness we have a clause in the lease to add cleaning and charge to them if it becomes an issue. i havent had to do it but i have learned to be somewhat tolerant except for safety and pest issues (trash,exterior storage).

Since this is a pretty sizable building the issues might need in excess of 100K.

If the tenant doesn't buy the house the option money and the excess rent payments are lost.

If the property has been sold at auction and the original owner is still within the 1 year redemption period, is there a way to receive excess funds back if the property is redeemed?

Then you may offer her enough money to make it fair in case she can collect the excess proceeds from the auction. 

Realtor fees are not excessive (unless you're not selling anything).