John Kuhl and Andrea Saunders discuss protective measures for buyers in troubled times.
- Before the Transaction, learn about the seller as much as possible. If the seller is insolvent or becomes insolvent, the bankruptcy courts can reverse the sale.
- Buyers must clearly document that the transaction was made at arm’s length, for value and in good faith.
- Obtaining a creditors’ rights endorsement to the title insurance policy will diminish potential pos-closing bankruptcy-related risks.