Does the LLC protect the seller from non-disclosures?

Sounds like your agent want to CYA, understandably, since any deficiency that might be seen and is not disclosed, you can hold them responsible, a final walk through protects the agent from last minute issues as it's your decission to buy.

- What type of contract should I put together to protect myself?

Educating a borrower may have little financial reward initially, but it can be rewarding in public perception which by the way can be very valuable.

How do you protect against that?

Here is what I was referring to - it applies when your residence is converted to rental use:http://www.irs.gov/publications/p551/ar02.html#en_US_2010_publink1000257022

I really want to make this public so other people won't fall into the same trap

Interestingly enough on the way there they mentioned on the radio that Dekalb Public Schools had been put on probation.

Nw you have protected other buyers and with that necessary disclosure, they are likely to play ball more with you.

I was having a conversation with my dad about inflation, which can be similar in effect to recession, and came to the conclusion that I just don't have enough assets to protect myself against it.