I would never do some land contract where I have to wait for and hope for proper conveyance after I give them my $15k.

It is extremely impractical to think or hope that HUD will let Betty Borrower convey title to Paul Promoter who then sells to Wendy Wrap and expect HUD to allow Wendy Wrap to assume Betty Borrower's loan.  

While i would agree with them myself in general (i have bought in my states from many providers over the years) it is important to convey the following about our company.1.

To your questions:1) There is no need to record a purchase and sale agreement, but there is a need to record any type of conveyance (transfer of ownership) of a property, no matter what form of sale/financing.  

Simply leaving the underlying mortgage in place is fine, so long as you create a security agreement for both amounts, your purchase agreement won't convey the security interest, in CA they use an all inclusive deed of trust, which is fine!

Generally only the PR has the right to convey the property.

The other way to check is to check out the Alabama county court records and dig through the paperwork (if you live around there obviously)Deed Assigned at Foreclosure to: After the expiration of three years from the date of the sale of any real estate for taxes, the judge of probate then in office must execute and deliver to the purchaser ... a deed to each lot or parcel of real estate sold to the purchaser and remaining unredeemed ... and such deed shall convey to and vest in the grantee all the right, title, interest and estate of the person whose duty it was to pay the taxes on such real estate and the lien and claim of the state and county thereto, but it shall not convey the right, title or interest of any reversioner or remainderman therein.

He can convey any interest, in whole or in part, as his estate planning program and avoid the due on sale issues.4.

Consider a conventional settlement where a seller grants the conveyance deed.

So long as possession was not conveyed and the contract provisions were not completed and that no consideration was paid, I'd tear up the contract (not really) but treat it as being invalid at that point and re-let to another tenant.