Equity participation gives REI or Owner rights to enforce under contract (suit or mediation), and should be clear to both.

@David Krulac, unless it is truly passive, if it is passive then you do not have to register as a Foreign llc. this is from Pennsylvania Department of State:Registration of Foreign Associations –General Rule and ExclusionsGeneral Rule – A foreign filing association or foreign limited liability partnership may not do business in this Commonwealth until it registerswith the Department of State.Exclusions – Activities of a foreign filing association or foreign limited liability partnership that do not constitute doing business in thisCommonwealth include the following:(1) Maintaining, defending, mediating, arbitrating or settling an action or proceeding.(2) Carrying on any activity concerning its internal affairs, including holding meetings of its interest holders or governors.(3) Maintaining accounts in financial institutions.(4) Maintaining offices or agencies for the transfer, exchange and registration of securities of the association or maintaining trustees ordepositories with respect to the securities.(5) Selling through independent contractors.(6) Soliciting or obtaining orders by any means if the orders require acceptance outside of this Commonwealth before the orders becomecontracts.(7) Creating or acquiring indebtedness, mortgages or security interests in property.(8) Securing or collecting debts or enforcing mortgages or security interests in property securing the debts and holding, protecting ormaintaining property so acquired.(9) Conducting an isolated transaction that is not in the course of similar transactions.(10) Owning, without more, property.(11) Doing business in interstate or foreign commerce.Being an interest holder or governor of a foreign association that does business in this Commonwealth does not by itself constitute doingbusiness in this Commonwealth.In general terms, any conduct more regular, systematic, or extensive than that described above constitutes doing business and requires theforeign association to register to do business.

I would a) check with your locale regarding occupancy laws, and b) see if you can contact an FHA person- in my area, there is a "mediator" who works with both landlords and tenants to help establish what to do in these types of situations. 

Buyerwill be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of thisAgreement, and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics' lien insurance, or any feeforcancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation;(3) Appraisal fees and charges paid in advance to mortgage lender(s).Line 707 the selling agent says my realtor was supposed to check off:Buyer and Seller agree that if there is a dispute over the entitlement to deposit monies that is unresolved_______days (180 if not specified) after the Settlement Date staled in Paragraph 4(A) (or any written extensions thereof) or following termination of theAgreement, Whichever is earlier, then the Broker holding the deposit monies will, within 30 days of receipt of Buyer's written requestdistribute the deposit monies to Buyer unless the Broker is in receipt of verifiable written notice that the dispute is thesubject of litigation or mediation.

Registration of Foreign Associations – General Rule and ExclusionsGeneral Rule – A foreign filing association or foreign limited liability partnership may not do business in this Commonwealth until it registers with the Department of State.Exclusions – Activities of a foreign filing association or foreign limited liability partnership that do not constitute doing business in this Commonwealth include the following: (1) Maintaining, defending, mediating, arbitrating or settling an action or proceeding. (2) Carrying on any activity concerning its internal affairs, including holding meetings of its interest holders or governors. (3) Maintaining accounts in financial institutions. (4) Maintaining offices or agencies for the transfer, exchange and registration of securities of the association or maintaining trustees or depositories with respect to the securities. (5) Selling through independent contractors. (6) Soliciting or obtaining orders by any means if the orders require acceptance outside of this Commonwealth before the orders become contracts. (7) Creating or acquiring indebtedness, mortgages or security interests in property. (8) Securing or collecting debts or enforcing mortgages or security interests in property securing the debts and holding, protecting or maintaining property so acquired. (9) Conducting an isolated transaction that is not in the course of similar transactions. (10) Owning, without more, property. (11) Doing business in interstate or foreign commerce.Being an interest holder or governor of a foreign association that does business in this Commonwealth does not by itself constitute doing business in this Commonwealth.In general terms, any conduct more regular, systematic, or extensive than that described above constitutes doing business and requires the foreign association to register to do business.

You usually meet with a mediator first before going in front of the judge.For reasons other then non payment of rent it can get trickey and complicated IE. you have to serve a notice to cease then a notice to quit if the tenant is breaking and rules or regulations set fourth in the lease etc......best advice I can give is to start the process ASAP don't delay it.

We're in DD on a FL NPN  and see that the borrower has requested and received Mortgage Modification Mediation in their Ch 13 BK in Florida's Southern BK court.

An order was signed during mediation that the tenant has to vacate in 8 days, she left 5 days later (On Memorial Day). 

It was nearly $800 to mediate the damage.

For instance, if you do not wish to use the mediation and arbitration agreements in the contract, do not have you or your seller initial those areas, simple as that.