From there, talk to the involved parties.  

Now for my out-of-pocket expenses:Down payment: $7500 (Hard money loan 90% purchase price 100% rehab)Closing costs: $6500Inspection: $400Agent's commission: $5200 (didn't raise purchase price of house with seller concessions, so that money didn't apply to the commission sadly. won't make this mistake again)Holding costs: $1300 (one interest-only payment of $770, roughly $200 in utilities and $360 in insurance)Total: roughly 21 grand. 

No transfer tax should be involved (see Garn/StGermain) as opposed to an LLC transfer. 

Due to personal faith based reason, I prefer to only invest in all cash deals that don't involve traditional financing (so typical passive RE options like syndications, RE funds with fixed returns, REITs etc are not a viable option for me).

It is a rare off-market property that does not involve work and/or have risk items.  

Many factors involved: 1.

And then I applied some leverage knowing that if they did not want to move forward that I would find another interested Buyer who was clearly ok without having the Certificate and knowing it was always used as a 2 family. 

I agree with Chris, why get a third party involved. 

If either of them were to stay involved, it could cost you money and you would collect less.Send it to collections yourself.

I'm a property owner on BP and a W2 employee (nothing involved with real estate).