If the partial buyer does not enjoy or can not rely on the security instrument then by definition we have a "different" note asset all together.

$200 - $400 is a small price to pay for a legal instrument that actually protects your interests.There are two problems with using template (standard) contracts:1) not specific to your situation2) in case of the need for legal assistance, no lawyer is going to be very happy about having to defend it, since it's not going to be a good fit.Honestly, if you can't find $400 to spend on legal advice and assistance, then this isn't a good enough deal.

Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.

Although on the resell he did mainly AITD  great CA debt instrument. 

.• Salary• Wages• Tips• Professional fees• Commissions• Bonuses received as a result of working or performing services• Taxable alimony received under a divorce decree or separate maintenance agreement• Nontaxable combat pay to combat zone personnel• Differential wage payments (wages paid by employers for employees who are on military active duty)• Certain net earnings from self-employment (after deducting one-half of self-employment taxes andretirement plan contributions)NOTE: The Tax Cuts and Jobs Act of 2017, passed in late December 2017, eliminates alimony as eligible compensation for any divorce or separation instrument executed after December 31, 2018.

CySEC is the supervisory and regulatory authority for Investment Services Firms in Cyprus under Law 144(I)/2007 which is a transposition of MiFID Law (Markets in Financial Instruments Directive), a European Union law effective as of November 1, 2007, under ESMA (European Securities and Markets Authorities), ESMA is an independent EU Authority that contributes to safeguarding the stability of the European Union's financial system by enhancing the protection of investors and promoting stable and orderly financial markets.

In this case the paper trail would unravel quite quickly and both parties would be in jeopardy.However if the seller were willing to put the whole 4.5mm into a new property worth at least 5mm there should be ample equity to then take out an LOC or other debt instrument against the new property.

From what I've seen it's a lose-lose-lose proposition:1) You either evict the whole group and start over if one moves and the remainder can't pay or2) You waste your time screening new people to find a replacement person for the one who left or3) You allow tenants to do the screening for you and potentially pick another unsuitable person because they don't know how to do screening.

@Mike LandryWhat kind of instrument did she sell it with?  

It is a good instrument to use for certain types of investments.