Both convey title and take back a promissory note and deed of trust. 

Doesn’t convey trust, being ethical, or anyone I’d give a second look at.  

The closer says the sellers taxes on all their other real estate that we are not buying needs to be paid to convey clear title.

I wouldn't worry about it too much, it conveys respect, or is meant to.Work with an attorney to develop a general contract with boilerplate language. 

Some are conveyed by Special Warranty Deed but Quit Claim is quick and easy and very often used when only a few hundred dollars is being passed here in Navajo county, Arizona......The ones I'm going to sell I plan on selling by Special Warranty Deed (some I'm keeping) like I see many big investors doing in this area.......

You can't convey clear title to the buyer and there is the due on sale clause that may be called by the current lender.Getting at the $130-150K of equity will be challenging without selling the property outright.

If you really want to get funky you need to also look at (in limited cases) mineral rights, if they convey, etc.

Second, if you purchased it with hard money, there would be no contractual rights to convey.

The tax deed is issued by the Sheriff to the high bidder at the tax sale and actually conveys title to the property subject to certain redemption rights you mentioned.  

I am proactive and use the words "our home" and "treat it with respect" and convey that we use it and consider it our home (we look at that way, actually) even though it's a 1000 miles away.