Without the utilization of Reg D, the plaintiffs would have more chance of winning under various legal theories, attorneys are more willing to take their cases, cost of defending yourself is much greater, and outcome far less certain.

Follow the law and you should be in a legally defendable position.

A person can lower there cost of ownership, help protect and defend the asset, help with maintaining it AND your not just some PM, you've got skin in it, you suffer if they suffer, you win when and only if they win, your interests are aligned. 

When you believe someone is going to cause problems, it's best to flood them with evidence and put them on notice that you are prepared to defend yourself.

Liability coverage can also help pay for the cost of defending you in a suit, if you are found to be at fault.

Wouldn't the PM legal representation be able to defend both of you rather easily?

Since the OP's first awareness of the three judgments was on receipt of the title search I suspected they were either not named or he didn't know to look at the docket for the Defendants or the pleadings to ensure they were properly served. 

I am not trying to defend any TK when I say this but in my mind I am thinking the bigger, established TKs got to their size and have lasted this long (10+ years?) 

I suspect the answer will be a very firm NO.If you wholesale a property, how will you defend yourself against a charge of taking a net listing?

Same goes for CPAs, by the way.EAs are more qualified in defending you against IRS problems, this is what EA training is about.