I am not sure anything is legally required.

The report of the apt, as neat and clean and moderate smell of smoke does not rise to the level of damages IMHO, and even considered legal notification.

This is a strategy to hide what you have done, not a legal method of circumventing the clause.

That part does make some sense, especially since the first property we're looking at is out of state and it would cut back on legal fees to just file in that state. 

Is it properly zoned and permitted? 

You then have to direct the custodian to do something with your money in a legally allowed investment.

And to your last sentence, I'm not sure there is a workaround to avoid mortgage lending rules, especially if your loan is to a borrower who is also occupying the home (given how sensitive the CFPB is with owner-occupied loans).Sorry for the segue...https://www.nolo.com/legal-encyclopedia/whats-the-...

You want to have an idea about the home's legal use in order to figure if it's a deal. 

I have heard of many states where landlords cannot bill for their time. you should not do so without confirming that this is legal in your state.

They both insist that there are creative ways to structure this deal so that me and my mother can LEGALLY , and secured by CONRACT, be able to collect the net proceeds, and split it 50/50 as her and I agreed from the start.One of the proposed arrangements I researched and sought legal consul for, and am fairly certain would in fact still be an act of fraud.A broker brought in an investor who proposed the idea of purchasing the Mortgage Note, and giving us the difference, secured of course in advance by a contract where we would agree to forfeit the Security(house) once the note was purchased.