@Dion DePaoli might help you, I don't know if he works AZ, I didn't service there.The settlement of a note sale is pretty simple, an assignment, funding, an accounting, tax reporting and filing.

This is usually all taken account of at closing, so if you haven't already, check your settlement statement and see how that was apportioned.

These changes will affect buyers, sellers, mortgage brokers, lenders, real estate agents/brokers, and title companies as well.The New FormsThe new rules replace the Good Faith Estimate, HUD-1 Settlement Statement and Truth in Lending Act Disclosure Form with the closing Disclosure and the Loan Estimate.

The reality is either side can try and tie up EM in courts with attorneys if each side backs out so a settlement is usually reached to end the contract etc.The other buyer agreeing to 7 day inspection for non-refundable is very strong.

There are three (3) categories or buckets if you will on a closing/settlement statement, which include: Selling ExpensesLender/Loan related costs and charges Operating itemsThe only permissible "closing costs" that can be paid with 1031 Exchange proceeds without incurring taxable boot are selling expenses. 

Sale proceeds go to the LLC at settlement, proceeds are then cash deposits and are still in Ned's capital account.

It is a week before settlement.

Otherwise, doc stamps are 0.7% of the sales price, title insurance 0.55%, plus $4-600 in settlement fee, title/city lien search, recording, misc. fees.Doc stamps, title insurance and estoppel fees are typically the seller's expense (in Broward typically the buyer pays title insurance).

Anybody get a letter regarding this? Does anybody have any advice on how to proceed?

You can request to use your title company but the buyer can choose their own settlement providers according to RESPA.