I recently sold a property for which I sold the identical property right next door 5 years ago at the peak of the market.

Larry, very interesting post since this is almost identical to what I'm considering doing.

The note should not address these issues as it would likely duplicate the issues and if not identically addressed, could cause confusion as to any right to cure.

With the proper identity docs from the State of Texas (see #2), there is no reason you would need witnesses.  

For instance, assuming you have 2 identical properties (hypothetically, but I have seen this quite often in new subdivisions where owners build the same model but some add a basement) one with basement and the other without basement.Property without basement:  3,000 square feet selling for $300K, or $100 per square foot.Property with basement:  identical 3,000 plus 1,000 basement, for a total of 4,000 selling for $450K.  

There are of course hybrid deal structures and other circumstances that make no one deal identical to the other.  

(b) If the records of a series are maintained in a manner so that the assets of the series can be reasonably identified by specific listing, category, type, quantity, or computational or allocational formula or procedure, including a percentage or share of any assets, or by any other method in which the identity of the assets can be objectively determined, the records are considered to satisfy the requirements of Section 10A-5A-11.02(b)(1).

For the most part we run credit and ask for taxes to verify identity.

The rules for securing information and the disclosure of the reports is getting increased pressure because of all the identity fraud publicity (and reality).

Also remember any recent comps of an identical unit is listed at 1200 square feet to boost the price/sq. ft.