I'm thinking that this is going to take a good lawyer and a brilliant tax person to do.

Homeowner pays taxes on it, about $250 annually, but doesn't technically own the parcel.During title search, my lawyer discovered that given the status of this second parcel, the title company will not issue insurance on this...only on the MAIN parcel where the house sits.A little more background....the lady we are buying from has been in the house since the late 50's and the status if this second parcel of land hasn't changed.

Talking to our Lawyer over there, he says it will cost around $1,400-$1,700 to set up an LLC for the property there, which is fine; but I also hear NY LLC protection isn't nearly as effective as other states.

Susan,First, this is not legal advice, nor should you take the advice of legal eagles on the internet over the advice of your lawyer.  

This guy likes to play lawyer filing motions and appeals pro-se which leads me to believe he knows the laws and will probably file suit if I give him the opportunity.

Does anyone have any recommendation on a good real estate lawyer in Collin County.

Do I see a lawyer or accountant first?

After 2 weeks I'd have my lawyer send a stern warning that they could be held in breach of contract.

I will, of course, be running it past my lawyers as well.

-If this situation is confusing to you, you need to talk to a lawyer before you set this up, the tracing of the legal entities and responsibilities are crucial to making sure you get the liability protection that an LLC provides.