Legally, she can't sign a purchase contract with you until she officially owns the property after probate is filed.The pre-lim report may or may not show debts from medical, but for sure with the SI title would be satisfied with that.  

There is not much etiquette, find a deal or a buyer, and find someone else who has the other half, get good contracts for every step in the process.

I just got an apartment style duplex under contract two hours ago.

I'm sure you would have to be careful how the contract was written to protect both parties.

Could you put the house under contract while you refi - likely 3 weeks with a good small local lender? 

I'm from Chicago and know you are a smart guy or you wouldn't be going to Loyola (I got into Depaul, arch rivals!)...

Get an appraisal or at least a good CMA to determine the current as-is value, then get the property under contract for less than that.

My realtor says I just need to put together a land contract and have the title company review it and officially file it.

I had to cancel a recent contract because I couldn't find a serious buyer. 

It's not complex really to do, for my particular situation I am set to close escrow by the end of November, so I don't want to risk time for switching the buyer's entity on the contract if I don't have to.