And if so, how am I protected so that if they were to default on the contract I would be able to take action?

Title to property is protected from things like Tax liens, Judgments, divorces, death, and other "life problems" that people get themselves into.

John, I'm guessing you are looking at protecting your contract, and in that case "recording" it with a title company will do little unless another investor is closing with the same title company.

Thats the key being able to protect it from the stupidity and carelessness of tenants and using abraisives.

It's worth protecting yourself

Or is it just a redundant doubling of the protection just in case one of the wires is not connected properly or gets chewed through or something?

Set it up so your interest in protected yet you have the liquid cash for the personal legal activities.Do not let the ex jam you up.

We always like to build a relationship with and get to know someone BEFORE we do any business.So pull up a chair, grab a cup of coffee, and come talk with us.

Or, how does everyone protect themselves from lawsuits etc while investing with a lease purchase?

Not good or bad but clearly beyond the scope in may ways.Online surveys can make it very easy to protect your identity.