So DoSC is a very real risk regardless of how this transaction is done.One this risk is understood, you make an excellent point that there is a risk of a dispute with the seller down the line.

Lastly...Though I'm not intimately involved in the claims process in my role, I can say that we do see successful resolutions to these types of claims.

They are the ones to ask when a landlord disputes a water bill to issue a credit and show a receipt.

Dispute anything bad. 

That way, if there is a dispute which arises about the balance sometime in the future, you'll be able to show you provided monthly updates to him monthly and there wasn't an objection.

You can go with the contractor, but the actual register purchase should be with your own credit card/checkbook as the rightful owner.Reason: If you ever have a falling out or dispute with anyone working on your project who purchased project materials, that they could easily claim it as theirs, take off site (steal??)

If the debt for the second lien is indeed discharged in the BK, there is no chance for a deficiency as stated.In regards to the possible resolutions.  

@David T.I agree that litigation only benefits the solicitors.If sufficient evidence is presented to the landlord along with a letter (perhaps from a solicitor) detailing the statutes that have been violated, it is quite probable the tenant will be released from the lease and all deposits refunded.Sometimes projecting you have the resolve to go to war is sufficient to create an opportunity for negotiated resolution.

Exceptions happen, that's why you have resolutions.

@Assaf FurmanFirst up is have lunch with your partner and write down everything that you're willing to do everything he's willing to do Then go see your partnership and draft a joint venture partnership agreement and a new LLC operating agreementI would have someone to be an arbitrator of the company so that disputes can be referee'dGet your prenuptial agreement amongst 2 business partners@Douglas DowellIs a great corporate attorney