(1) Let $b_n = \frac {1}{a_n - \frac{1}{2}}.$ Thus, we have $a_n = \frac {1}{b_n} + \frac {1}{2}.$
Since $(1-a_n)a_{n+1}= \frac {1}{4},$ then:
$$(1- \left( \frac {1}{b_n} + \frac {1}{2} \right)) \left( \frac {1}{b_{n+1}} + \frac {1}{2} \right) = \frac {1}{4}.$$
This simplifies to:
$$b_{n+1} - b_n = -2.$$
Given that $b_1 = \frac {1}{ \frac{1}{4} - \frac{1}{2}} = -4,$
we can deduce that $\{b_n\}$ is an arithmetic sequence with a first term of $-4$ and a common difference of $-2.$ Hence, the sequence $\left\{ \frac {1}{a_n - \frac{1}{2}} \right\}$ is an arithmetic sequence.

(2) Knowing from (1) that $b_n = -4 - 2(n-1) = -2n - 2,$
we get $a_n = \frac {1}{b_n} + \frac {1}{2} = - \frac {1}{2n + 2} + \frac {1}{2} = \frac {n}{2(n+1)}.$ Therefore:
$$\frac {a_{n+1}}{a_n} = \frac {n+1}{2(n+2)} \cdot \frac {2(n+1)}{n} = \frac {(n+1)^2}{n(n+2)} = 1+ \frac {1}{n(n+2)} = 1+ \frac {1}{2}\left( \frac {1}{n} - \frac {1}{n+2} \right).$$
Summing this from $1$ to $n$, we find:
$$\frac {a_2}{a_1} + \frac {a_3}{a_2} + \ldots + \frac {a_{n+1}}{a_n} = n+ \frac {1}{2}\left(1 - \frac {1}{3} + \frac {1}{2} - \frac {1}{4} + \ldots + \frac {1}{n} - \frac {1}{n+2}\right).$$
The series telescopes to:
$$n+ \frac {1}{2}\left(1+ \frac {1}{2} - \frac {1}{n+1} - \frac {1}{n+2}\right),$$
which is less than $n+ \frac {3}{4}.$ Hence we have \boxed{n+ \frac {1}{2}\left(1+ \frac {1}{2} - \frac {1}{n+1} - \frac {1}{n+2}\right) < n+ \frac {3}{4}}.