I've also heard some lawyers argue that having the deed in the LLC but the mortgage in your name pierces the corporate veil.  

I'm sure the people that felt they were losing chances at money started crying, real estate brokers, stock brokers, business brokers, lawyers and they had their lobbyist go to work at various capitols passing laws to steer the money back to them. 

This is definitely making me rethink if it's a worthwhile gamble (especially considering the owner that is bey foreclosed on is supposedly a lawyer).

I would at least talk to a lawyer and get their opinion, I am sure there is someone who will take your case!

I am currently looking at having a lawyer review all previous contracts.

You can hire a RE lawyer to oversee my  side of the contract if I really need to.

I'd also have a hard move out date along with the lawyers (or whoever handles your closing-I'm in Canada where it isn't always the same as the US) holding back a large enough amount to get her to move out on time and leave the place in good condition.

The alternative I see as a work around but full disclosure I am not a lawyer is giving tenants notice to vacate and then listing the property with no active tenants or have tenants sign off that they are not interested in buying the building and list right away. 99% of tenants are not capable of being buyers so who knows how often this ordinance will actually be used.

That is a question you may need an answer for if interviewed by SEC.The SEC lawyers I know of generally say that raising $ for others requires a license, unless, you can find an exception to fit under.

If they don't respond, I swing by the apartment on the way the courthouse or before I pay the lawyer and make sure they haven't already moved.