The interstate exchange is recognized for federal income tax purposes, although there are some states that do no recognize the exchange for their state tax return.

I'd put in large bold letters something like "DISCLOSURE: I __seller's name___ RECOGNIZE THAT THE FOLLOWING LIST OF PROJECTS SHOULD BE DONE TO THE HOUSE BUT I AM NOT INTERESTED IN DOING THEM.

You begin recognizing the capital gains when you receive the first payment. 

A "convetional" loan (sometimes called a "conforming" loan) is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names). 

They recognize the big utility company name and realize your not sending out a handyman to fix the furnace.

Today, he's a Professor who's recognized as being a front runner in his field.  

I just should have recognized what he was doing when he handed us his 10 page agreement to sign.  

@Shawn RegnierSounds like you have done your research, and are planning on forming a legal corporation and making an S election for tax purposes.A reminder, remember to file your S election within applicable time limits (there is relief for late filing but reasonable cause is required), and also to pay out 'reasonable compensation'.California recognizes the federal S election so no separate state S election is required.Another note, reasonable comp is not plucked out of the air, or applied at a general percentage level, but determined according both your businesses and your facts and circumstances. 

It's really outside the social norm and, when a person doesn't recognize that, it makes me seriously question their judgment.

Maybe you ought to recognize this as an opportunity convert "shy" prospects differently that others do in your market.You'd do this by giving the shy prospect an alternative; an extra step or two in the sales process.For example, instead of calling you or a live operator, they could call a recorded message 24/7 that lets them listen to a message about how you can help them and get a free report on such-and-such information.You've slowed the process down and are trying to build a relationship.