I'm not sure why but after many years and learning more about RE I am now being presented with a different deed change to say "tenants by the entireties" this being for the purpose of "creditor protection". 

You can DEFINITELY save THOUSANDS a year ............setting up your TAXES CORRECTLY............What's the BEST way ..............to set up  a Rental Investment ........for TAX Purposes???.......

The purpose of screening is to find reasons to not rent to someone.When a applicant starts giving a sob story, if you find a lie on a application or a application is incomplete in any way simply throw it away .

For purposes of this provision, “the owner’s legal and permanent residence”shall mean a property owner who makes his or her legal residence at the site, as evidencedby voter registration, vehicle registration, or similar means.

Sole proprietorships, partnerships, LLCs and S corporations are pass-through entities for federal income tax purposes.

Purpose of deposit is to keep you whole in the case of damage and/or early termination.  

@Priyanshu Adathakkar I bought this building for a owner occupier purpose.

Meaning if you kill someone by accident your punishment is less severe than if you do it on purpose but that is not the case with securities law.  

Its considered commercial for Banking purposes so I'm limited to commercial lending.  

Basically that letter will guarantee your funds will be used by the title company for the purpose of your transaction and if anything goes wrong (similar to what you've described), the title insurer is on the hook.