The investigation may uncover other problems and even cause them to lose their license which would protect other investors.4.

While more expensive, this would allow us to protect ourselves. 

@Patrick Smith For asset protection reasons, I put the property in an LLC when I purchased it.

We specialize in protecting real estate assets once you've acquired them, but we also deal with all those things you mentioned it looks like you need, so feel free to connect with me if you'd like to know more.

You may also want title insurance to protect you from claims and faults prior to your parents purchase. 

My wife and I currently own a 2-family home with a short term rental which generates quite a bit of cash flow month-to-month, and it is getting to the point where we need to separate our personal finances from the rental's, and, we also want to protect our personal assets from liability and take advantage of any tax benefits.

And stepping outside that box is a risky thing these days.So you'll need to watch out for that as well as the extra level of protections necessary to secure the property for you and either provide a profit incentive to the unrelated party or protect them from a taxable event.

The RE commission frowns heavily on anything that fails to protect the public.

So you are protected.

If your goal is to provide an online service, think carefully before touting your expertise at being the later.