They really don't know anything about the condition of title unless the foreclosing trustee specifically instructed the crier to make a disclosure prior to calling the auction, which they very rarely do.

For full disclosure, I haven't done this myself. 

And I won't buy real estate from someone whose business model is predicated on avoiding licensing laws and their accompanying financial disclosures and ethical standards.Buy something and then offer to sell it to me.  

Are any specific disclosures needed in the contract from a liability stand point since he is taking over payments?

Anyone who attempts to stray from these customary applications of non-recourse debt, say, between a less sophisticated lender (even if they are given 100 pages of disclosures) and an investor who was the party that drafted the and concieved the loan, will likely be be in a very bad light with any judge if the lender takes them to court.

I have closed hundreds for myself using a notary, but I also had to do the HUD-1, IRS reporting forms, disclosures are still required and notices with recordings.

Focus on what you do best and that's doing deals. keep your contracts simple and to the point with full disclosure and leave the rest to your attorney.

Doing anything without disclosure is questionable if not fraudulent in my opinion.

Unless there are state requirements for disclosure for both sides, only the side applicable to that party needs to be disclosed.

One thing you have to take in to account is once you become a licensed agent there are additional rules you have to learn and follow so you don't get your license revoked, i.e. marketing guidelines, disclosure during purchase, etc.