It's not really a benefit to be confusing.What they want to do is have the property transferred into a trust (days, hours, minutes) prior to settlement.

The 1031 must be reflected on the settlement statement.

(We settled anyways because the settlement was cheaper than what my attorney bills would have been to defend against this absurd suit, so I didn't test the true strength of the LLC)

I would get an attorney or agent involved and in reality you should only be dealing with him as he owns the home unless there is a court order elsewhere that gives her some rights tothe propertyI think it's possible the final decree of divorce or the property settlement agreement required her to give him a deed in return for him paying her equity. 

The last time I spoke with the lender, they advised they have closed the account and will only accept a settlement offer.

Hey @Jeff Ryan - While I can not speak to your exact situation, I can speak to the thousands of homes I have walked here in Chicago, where majority of the homes were built in the late 1800s/early 1900s.I would say that 7/10 of the older homes I look at have some sort of settlement in the foundation, which causes the cracks and sloped floors you are mentioned you are seeing in your property. 

Meaning if they cannot find a fault in the paperwork or reach settlement it can cost more in the long run.

With the NAR settlement there is a specific form used to address commission with the seller.

Exonerated 4 times, $0 cost, and the last one paid a $500 settlement plus my attorney's fees with no admission of wrongdoing on a $15k suit.

They will have relationships with creditors, or at the very least, know exactly what the creditor's parameters for settlement are.