Disbursement of funds held in escrow must meet the conditions of the escrow agreement.

Once you agree on terms of the offer and both parties sign you have an executed agreement.

They have the means to private money which will fund 85%, while I have the remaining 15% - this is where I come in - kind of a third wheel.The agreement is that I contribute my private money and some time for basic rehab, in return for the experience, learning and 15% of net profits, and of course my 15% of initial capital, while they split the rest among themselves.They said  that they will write up all of our contracts, including mine for the 15% initial project capital, as well as, my 15% return on net profit. 

Because you know him so well, I would probably forget the purchase and sale agreement assignment and go straight for an exclusive option to  purchase, which is recordable.  

Even if I did retain you, I am pretty sure the Partnership Agreement and Operating Agreement I just drafted would cost you that $7,800.00 check you just gained.

This is a cash or terms business.One tool is not enough.Situation - Free and clear pretty house ---> installment sale - private mortgage, low down, buy and hold or resell.Situation - no equity pretty house ---> sub2 or wrap or lease option assignment, exit rent out or lease 2 own or resellSituation - 20% equity pretty house ---> list it if licensed, sub2 plus noteSituation - 40% equity ugly house ---> wholesale flip or JV and buy it or JV with the seller (buy sub2 + note, own it, jv agreement, improve it with private money, list it, resell it, pay off former owner and private lender, make JV fee of 5% +)There are other tools but that is enough to get a strain on your brain. :)And just because you understand those tools, does nt mean you can persuade the seller to use one of them.Cash or terms. 

We can split the assignment fee50/50 with a signed agreement to that fact.

If so then my cash buyer can use that report, skip escrow and save money because my purchase agreement that I am assigning states buyer pays all closing costs.

I would Google - Arizona Residential Lease Agreement, you will find forms and websites that can answer your questions.The Arizona Association of Realtors (AAR) also has a Property Management Forms section with links to various with advisories, articles, and videos. 

In Massachusetts we have something called a P&S agreement.