Seller that it's only fair that during our transaction everything that we agree to verbally is in writing so there is no misunderstanding and we are both protected contractually correct?

Edit to add:  You are jumping to conclusions here - and misunderstanding what I was suggesting.  

I may be misunderstanding the law, information between that and title insurance is getting a bit jumbled.

By the way, some of the upcoming payment improvements that I mentioned earlier in this thread will drastically increase payment flexibility options, and will help reduce these kinds of misunderstandings.

Don't misunderstand i am not a jack-of-all trades my passion is Electrical and i sometimes do other things.

You know how many times we repeat the same words to every pilot every time, this is very important in real estate, to say, in conversation, the same thing to everyone in certain circumstances, it means that if there is any misunderstanding you can repeat exactly what you said to jog any memory or impress any judge that what you said is consistent.I also used modified flight strips keeping track of loan status through processing and transactions. 

Did I misunderstand what he's saying?

For most sellers and buyers it is a high dollar, emotional transaction that they do only a few times in a life time; and a simple mistake or misunderstanding in the process can become a large liability.

I have heard some of that misunderstanding before.To clean up some of your jargon:Mortgagee = LenderMortgagor = BorrowerYou are the Mortgagee when you buy a loan.  

As for @jay , I think maybe I was misunderstanding his intention.