Covid + real estate, there's always a cloud of uncertainty. 

I always buy the land with title insurance and ensure there are no liens or clouds on the title.

It essentially clouds the title, so if they try to sell to someone else, it makes it harder to transfer title.

James,Yeah that is a tough decision but at the end of the day, regardless of getting caught or not, I know I would sleep better at night without having this dark cloud of potential fraud hanging over me.It is good to see you taking the side of caution. 7% is really good I am in the Pensacola area and am getting rates between 8-10%.

In most states, clouding someone's title without a legal basis (which is what he is threatening) is a tort which will expose him to damages. 

There are 20 million of these houses in the USA that have little equity.3) find a home seller with no repairs and is a pretty house.4) find a home seller that has a fixed note, not an ARM.5) most importantly, find a seller that wants to avoid a short sale on their credit, or any other negative move, like a ch 7 bk, or a deed in lieu of foreclosure.then on the tber side, 1) find a tber that wants to own and not rent2) find a tber that has income that is steady, and has low risk of job loss, like medical personnel.3) pre-underwrite the tber by having a licensed mortgage professional look at a 1003 app, look at credit, and give an opinion as to what is needed to get the mortgage, like decrease debt to income ratio, etc.I use a lawyer to draft the lease and the option and the memorandum to cloud the title.I use a 3rd party payee.

It takes all of about 15 minutes to transfer them to your computer and/or "cloud" drive (whatever the hell that is).  

But my attorney fears that the contractor might sue me if he thinks I dumped too low and anyway, how do I sell it with the title clouded by this agreement?

The possession of the redemption certificate is what allows you to redeem.Title insurance will be a little hairy in this, depending on the agent, since title is clouded with the redemption.

Now you have a cloud on title that you have to deal with if you elected to sell the property.