Am I as the buyer able to sue the owner of closing company/person who conducted title search due to fraud/negligence or do I only have a breach of warranty case against the previous seller (who is a master of setting up and dissolving LLCs to conduct similar high risk deals - unknown when transaction began)? 

Known vs unknown I guess. 

I'm would probably run a background check for every new (unknown) tenant.

In many ways it can be easier to raise the funds because many of the unknown factors that are discovered when first taking over an asset are now known.

However, the Title prelim will tell the tale if there are other unknown liens out there as well.

If you must file an in rem QT because you have unknown heirs, or can't find former owner to serve papers on him, then taking it to a judgment will cost between $3,000 and $5,000 IF nobody puts up a hard fight.

There were so many times I wanted to just pull out because I was afraid of the unknown, but thankfully we pushed through at the expense of some sleepless nights.

If the title company gave you a report that had this on it there isn't much you can do, however if this was unknown your title insurance may kick in at that point.

I have software that analyzes deals for me since I get so many, I just add the "fudge factor", unknowns, there is a calculation for that most just throw out numbers lol.

I was concerned about the budget so I went with the familiar contractor vs taking a chance on another unknown.