They generally are not paid until everything is done, and I'm sure they want to be paid, but you're not going to get title insurance without their clearing of the title. 

I work full time selling insurance and on the weekend I put time into a tech start up my friends and I own.

AT&T will certainly pull title and verify that it is clear. 

(it would not be fair for you to have to pay for a lease to be drafted up, pay for landlords insurance etc etc) you should instead be dealing directly with the seller... thus when I say you should collect security deposit, I mean you should collect it from the seller, not the tenant.... whether the seller in turn requests the same from the tenants or not... that is his business and his headache.  

If she is throwing money into the mix, have it titled in your name and give her X time to refinance, within which time if she does not/cannot you can sell and return her investment to her, minus any losses. 

You will appreciate a structure people are familiar with every time you go to buy insurance, deposit security deposits, etc.You can get a tax ID instantly on the IRS site.

They just  count on insurance to cover their risks.An LLC is not a substitute for insurance.

The insurance will vary based on whether you need a Builders Risk policy and vacancy coverage (which you typically need). 

Insurance is another biggie to agree on. 

Hello BP -  I have my Purchase Sale Agreement ready for my wholesales, but do I need to provide an an Assignment Agreement as well at my title agency for the end buyer, or he will provide with one?