These types of transactions have been looked at unfavorably by the IRS as a way of accessing your profit while still taking advantage of the 1031 and there have been some that have been disallowed upon examination.  

I called his attorney and he explained to me the lien amount (which I already knew) and that there was a possible mortgage issue from the 1970's that could be proven with documents from the seller or it not he could *override* it. i can't remember the exact term but the context makes me believe that what it is. i didn't want to sound like a newbie since it was the seller's attorney ;/ He offered to do the transaction for mebut my only issue is that my contract states that I would be given a 14 day inspection period.

Try looking into transactional funding.

I need to find large-scale fix and flip investors involved in completing the most transactions in my area.

Do you care about the tax implications from this transaction? 

If so, how much is the typical % rate charged on a such a transaction?

@Patrick Boutin, it doesn't appear that your agent structured a lease and option transaction.  

All terms for this type of transaction are fully negotiable between buyer and seller. 

My question is, should a memorandum be filed for all real estate transactions?

None of the parties to the transactions should hold funds.