Is there a legal/tax/etc issue?

Not only that but I think your wife would be legally required to mention to every seller that she is a licensed real estate agent.Best of luck to you on your real estate adventure Cody!

They take up a lot of space and are difficult to fit in a standard file cabinet (since they're legal sized).Is there any reason at all to keep the paper copy of the HUD if you have a pdf copy?

Just know this is my conclusion after reading everything I could and getting top shelf legal and financial advice...

Ask if you can renegotiate but it is a legally binding contract so you can be forced to pay.

First, you should start legal action against the agent, that is just unacceptable.Second, being an agent myself I have had way to many dealings with bad agents, so I get your frustration.  

I can't give legal advice.YOU WILL need to disclose you are an agent on any marketing.

Only an attorney can give you legal advice for your specific situation.In general an LLC  can help limit your liability.

_____  From someone that is still learning Real Estate and has Real Estate and construction management experience I would say to be real careful and be legal at anything you do.  

In my day job, I am a corporate and securities lawyer and I frequently help real estate developers structure the legal entities they utilize for the investments and also comply with federal and state securities laws in connection with bringing on investors.