Is this quit claim deed legal?

[John Babcock]

I am in the process of wholesaling a house from a man who would like to leave town ASAP! 

He bought the house from his pastor with cash in exchange for a quit claim deed, but the deed was never recorded.

I took the seller down town today to file the paperwork. The woman in the assessor's office informed us that it would be rejected by the recorder because his name is signed differently than it is printed.  It's printed "Kenneth" but is signed "Ken."

So the solution is easy right?  Just get the pastor to sign a new quit claim deed with the correct name...  I wish.  This is where it gets interesting.

The pastor refuses to sign the new deed because he does not think that the seller is getting a very good deal.  He acknowledges the fact that the seller did pay for the house (much less than my purchase price btw), but refuses to sign the deed and let him sell it.  

The seller is getting violations from the city for the condition of the property that he can not pay and needs to be unencumbered.  I am not giving him a bad deal at all, the pastor is just very ill-informed. 

What I need to know is whether or not the quit claim deed is legally binding even though the assessor will not accept it.  Is there some sort of recourse my seller has?

Thank you