The cost was negligible and I felt very good knowing that I am protected and get great advice about what's allowed and what's not allowed with a 1031 exchange.2.

It would likely be over major negligence.

Normally the suit would claim negligence in maintaining the property or something of that nature.

$5 Million in liability insurance is a lot cheaper,,,and if an injury or death is a result of your negligence you could be held personally responsible, no matter what the structure is

Just careful with the shady areas given the non-negligible welfare population over there.

If that's the case then per the contract they can only come after the earnest money.Of course if you had gross negligence,fraud,criminal activity etc. they can still come after you.If you tied up a property and then didn't perform the seller is being impacted in a negative way.Again with a wholesaler this is why non-refundable earnest money would be required if it was my client.If not we simply wait for another buyer or can kick them out of the contract and accept another offer from another buyer at any time.That way you have the wholesaler working on the long shot at the same time as pursuing other buyers.

Basically, what is negligence?

Also, who says you can't be sued for negligence.

Best to inspect mid contract and bill them for negligent or intentional damage immediately and have it promptly repaired. 

Attorneys tell me having the LLC means little as they'll sue the owner personally and the LLC for negligence anyway.