These are "local law" questions.At a minimum if I wanted the property and had the ability to close immediately I would be demanding that the seller do so or expect to defend a lawsuit.

They may not write LLC's (then you will need to get new coverageSpeak with your attorney to see if the parent LLC could be brought into a lawsuit regarding the property.  

The areas that are discussing regulation are:Conway - there is a lawsuit underway regarding regulations.Madison - being discussed at town meetingsFreedom - being discussed at town meetings.Jackson - has regulation in place. 

I assume he’s trying not to lose the property to a lawsuit.

If you fail to follow the rules, you may open your personal assets to a lawsuit.

I am doing my homework but I heard it prevents fraud as well as lawsuits as the first lein holder gets priority.

Because, most people think that having LLC will protect them during all the lawsuit (wrong).

I’ve owned several businesses, dozens of properties, hundreds of employees and not a hint of any frivolous lawsuits.

A good way to cause maintenance to go up is lawsuits and attorney's fees.

**All this to say that there was a class action lawsuit (by owners and PMs) initiated sometime late last year that I believe is still in process.