As a result the possibility of lawsuits is very high if the entire contract is not set up to precise standards.  

Said it's unlikely that he will escalate to a lawsuit over the fence.  

Part of the act of providing title insurance is that the seller has to give the title company an affidavit of his names and aliases, addresses, work down on the house within the past X months, and lawsuits/ judgments against him.

Often results in lawsuits between buyer and seller if lender accelerates note and buyer can’t obtain refinancing. 

There’s a possibility to build and in-law suite or some sort of small apartment separate from the main home once we build.

So the owner of the house could hire an attorney and file a lawsuit to take legal ownership of the portion of the neighboring lot that his house is on / fenced, if the house has been there for over 20 years.

The question was about the practical possibility of filing a lawsuit in this case. 

Submit an offer of this in writing with an end date of next Wednesday and be extremely clear that failure to do so is going to result in a lawsuit filed that afternoon for both past due funds and also for the misappropriation of funds to his company.   

To Summarize, all am looking for is cover my bases from law suits if anything **** happens & to have anonymity. 

You can’t evict, you can't foreclose and a lot of sellers wind up either trashed credit or in a lawsuit.