I’m now finding out that there may have been litigation regarding this with the previous owner and the county but I’m still trying to research and find this out.

In many states, it's not arbitrary but a matter of Civil Code. 

I'm a litigator and not an RE attorney.

I have heard so many people go on and on about structuring properties individually in LC's as some guarantee, and you are the first I have ever heard speak of what I as well have said which comes from the best litigators, "entity piercing"!

It will deter some litigation.

In most states when a property is involved in any Litigation it is unsellable because of the litigation.

I know people do it.. but if you don't have the ability to close you could put someone in financial ruins and potentially open yourself up to litigation.

Try:Rocket Lawyeror get a real estate litigation attorney.No legal advice given.

I said "Sure, let her know if she doesn't contact my agent and provide the addendum by close of business today, I'll be calling the local board of realtors and Freddie to report her, and she will be seeing me in civil court if this deal goes south".

If they actually sue you then they will send a summons with a the civil claim laying out all the damages they are trying to recover.