I would assume that those who are seeking a lawyer's advice are more likely to form entities if their lawyer recommends that action.

On the other hand I have consulted a lawyer in the particular state who says these type of loans are subject to the SAFE act and thus require specific licensing. 

@David Krulac  my take on condo's is that in the right setting they are fine.. but when they turtle up they can be a disaster.My son bought one that then had a water intrusion problem that you and I would have fixed for a reasonable amount but the NO nothing HOA board members basically non of them know anything about Real Estate construction or litigation get sucked into litigating the builder from 10 year previous by the Lawyers they hire.. and after half a million to lawyers they lost.. 

Also it depends on how good the lawyer is who drafted the plan.I don;t understand your term about "a lien be placed on the person".

I am not a lawyer, but my guess would be no.

I'd definitely contact them on the 3rd if payment has not been received and would definitely follow the local laws on posting a pay or quit notice and getting the eviction process started.However, if I were in your shoes, I'd get a lawyer to review my lease.

And as for your comment about not partnering with me or a lawyer, I think one of the best attributes one can have when entering a partnership is to have an open mind.

Now we will need a contract lawyer on board for the pre-nups& subject 2's :)But we did see an interesting addendum to a FSBO sign when we were @ our home in FL'WAS HIS'

The chances of a bank pursuing may be small, but I do not want to be on the other side of the courtroom against a team of bank lawyers.

Kind of like just because the bank deposited $1M in your bank account doesn't mean you can keep it if it's not yours.I would slow down on the lawsuit idea though, he will likely send it to you if you just ask or the DSS office may even be able to cancel the payment or pull it back somehow.Now if that doesn't work then talk to a lawyer, and you may even get the DSS office to assist you legally since they probably have a system in place to prevent claiming of unentitled benefit.