Since the tenants are still in place the law does not really apply.Has anyone been through a similar situation and how long is allowed before the ex-manager has to transfer the funds back to me to hold in escrow?

Just read up on exactly what the difference is....it's all in the timing of title transfer.  

You can't "get title in your name" unless a deed is transferred from the current/former owner...either legitimate, or fraudulent. 

If I end up having to do it later: I could transfer title to an LLC with one member (me) and avoid city transfer taxes.

When we were transferred we bought another house.

first deal should close by thursday this week.thinking of buying a tax lien property at an auction. if i took title to my name first, then did a quit claim, and transferred title to an LLC.

However Baltimore city requires you to pay transfer taxes to record a contract and refuses to record memorandums.

-There may be a Due on Sale clause in your mortgage that states the bank can force a sale when and if title transfers - since it will be transferring to you, you may be forced to pay off the note through a refinance or a short sale.

How would one know/find out what the penalty for transferring title would be if it's not actually spelled out anywhere?  

@Bobby HughesIf you are self-employed at least on a part-time basis you can explore opening a self-directed solo 401k, transfer some or all of your former employer 401k plan and then invest the funds in physical real estate.