I post frequently about the unnecessary complexities of most real estate investors asset protection structures and the point I normally emphasize is the lack of attention placed on the day to day operations that are far more critical to reducing liability exposure.

They can coordinate and supervise the project, protecting the owner in a variety of ways.

Liability Protection Asset Protection: The primary reason for holding real estate in an LLC is to protect your personal assets from liability.

For example: your current interest rate, rental rate, expectation for appreciation, tax benefits, leverage and inflation protection. 

This structure provides a way for us to be involved, be protected, and most importantly, build relationships.

It would most likely not give you asset protection since its a non-arms length transaction.

I plan on installing some form of termite protection after purchasing anyway, but is there anyway to make sure I'm not buying a house with a full blown infestation that could become a bigger issue?

There are a couple but its going to have to be pretty permanently attached to the land to protect the foreclosure option

However, in both associations, if they provided incorrect information that you relied on the purchase the unit, I believe the statute should protect you.As far as the title insurer's denial, title insurance acts retrospectively, that is from the Date of Policy back in time and from the information you provided, as of today your title is as insured and there is no defect or cloud on your title. 

They can draw up the contract the makes sense / protects you.