Most legal disputes are over security deposits and for small amounts.

The title company might also know about any legal avenues to proceed with releasing funds.

hi, make sure the seller signs the agreement. make sure it’s legal whatever you are doing. do whatever the escrow company says. make sure you get paid! 

They wont have it either and they won't have their CDC guidelines or excuses.   

*I am not a CPA, tax professional or a lawyer*I cannot give legal advice, so all of my advice is illegal advice.As far as I know, section 469 of the tax code is what allows for the "STR loophole". 

I have worked with many lenders that will give you the run around, ask for more items, with no clear cut guidelines. 

What legal options do you have, if something goes wrong?

There are other ways to legally wholesale without a license as well.

The underwriter of your loan may want to see your current property be leased and make sure that it covers your PITI, but that will depend on the guidelines of your lender.

Since I'm not an attorney and can't give legal advice, I did a little more digging and found the passage below.