The commission may impose a civil penalty of no more than five thousand dollars upon any unlicensed person who, after a hearing or informal resolution in accordance with all provisions of this Chapter and the Administrative Procedure Act, is found to have engaged in real estate activity without the benefit of a currently valid license having been issued by the commission pursuant to the provisions of this Chapter.

Not sure how a lien gives you the right to kick out a homeowner, but.......general liability, nor any insurance, is going to cover you for legal proceedings/legal disputes/contract litigation. 

You would need to spell out exactly who has responsibility for what, who makes which decision, and how you resolve disputes. 

See if there is any room to dispute the value there??

I have the architectural site drawings, and they have good references for where the border is, but in theory, the neighbor could dispute any painted boundary...which would probably cause me to need a site survey.

From what I do know, a lender's title insurance policy protect the lender's loan from defects in the title -- e.g. a lien not found by the title company, a dispute in the property line, or an heir of a previous owner with a claim to the property.

-How will disputes between principals be handled?

A recent guy posted a link to what he thought was case law that proved his point, but it actually disproved his point, he thought that a GAO decision on a procurement contract dispute was a court decision when it really wasn't and the article actually posted two links to case law that completely disproved his point that email wasn't evidence....lol.Have you done any actual calculations to show that anyone here is stepping over a dollar to save .10 cents?

Failing to do so will greatly increase you liability if a lawyer gets involved and any dispute goes to court.

I don't know where this is located, but at a minimum, be in a state that favors landlords in rental disputes, otherwise you're just providing someone a free place to live.