The “insurance” is a refi, assuming the buyer is current on everything, you have to use their title company to close the loan, lender’s title insurance and other fees and likely caveats.EXCATLY Wayne:Coverage CriteriaIn order to obtain coverage protecting the Buyer from exercising of the Mortgage’s “Due On Sale” Clause through Equity Assurance, LLC for the existing unsatisfied mortgage in the transaction the following must be met:Mortgage must be current or brought current at the time of closing.All property tax (county, city, state, school, MUD, etc.) must be current or brought current at the time of closing.Property insurance must be current or brought current at the time of closing.Home Owners Associate (HOA) dues must be current or brought current at the time of closing.Closing must take place at Paradise Settlement Services, LLC d/b/a PSS Title.Title Insurance must be purchased from Paradise Settlement Services, LLC d/b/a PSS Title.From there website.. this is simply a refi and I suspect your paying up front for a refi that may never happen.nice money making gig.. 

As a mental exercise download a simple floor plan off the internet and try to do a materials takeoff.

Still the local banker doing those kinds of loans might clue you in with zero self serving information about the market, its worth the exercise     

You pay a token rent; just enough to validate the contract as legit.Also, he gives you a lien on the property for $5,000 to protect your interest/option fee, which would be released if you chose NOT to exercise your option.Whatever you do, don't let this go beyond 6 months. 

But the concept is that if you adhere to what's in the contract and exercise that clause, then you can get your deposit back and terminate the contract.Now, not finding a buyer. 

You could offer him a chunk of the equity payout, if/when the tenant exercises the lease option, in return for a lower purchase price so that the property cash flows nicely during the lease period or partner with him through the whole deal and have him mentor you through this one (if he isn't willing, I would question why?)

Perhaps 4-6 agreed upon milestones with payment terms exercised with each progressive step. 

That might give you the option of exercising your mortgage contingency.You DO have a mortgage contingency, right?

Once you get renovate and get the tenant in, you exercise your option to purchase, and the bank finances the purchase.

The building did not sell in a year, but I did not exercise the condition, he sold 3 months later.