If done correctly, this will provide a "level" of protection for your personal assets in case of litigation.However, litigation is something you wanted to protect yourself from.  

Page 9 of this link is the notice that you can use. https://app.propertyware.com/pw/setup/mail_merge_i...http://www.courts.state.md.us/district/forms/civil/dccv082br.pdf

Did you have to hire an engineer like a structural or civil engineer?

Criminal or civil matter? 

Landlord/tenant disputes are going to be treated as civil matters.  

That is a very simplistic answer but all the above comments about checking with civil engineers, really doing due dilligence on the value of lots currently in the area (and if there is an expected appreciation in the area) etc. 

Nathan, I had an LLC, but not for real estate, bought liability insurance, and the agent had me to also add an endorsement to cover me as an additional insured.I had spoken to attorneys here in NY about this issue, and I was advised by lawyers as well as my insurance agent that litigants normally  sue the LLC as well as the owner by default.

Failure to follow those regulations can expose you to tens to hundreds of thousands of dollars in legal exposure, both civil and criminal.   

I am currently living in the space as a non paying renter.I got curious and googled the current owner and found out that the state of Oregon has a litigation case against him, his wife, his company and his business partner.This case was never disclosed to me prior to starting this home purchase.My questions to the community are....What rights do I have to now back out of the deal?

Its free just type in the persons name and anything they have been charged criminal or civil shows up .