Legal troubles; What is the effect

Currently looking at an MF project that we are almost ready to send out an LOI on. It seems to be that the owner may be in some legal trouble. Not sure the entirety of it, but it seems to have to do with people on the planning board of the city, as well as potentially illegal construction loans.

What is the effect of this? Does this mean the seller is really looking to sell fast? Will I be at any risk if I intend to purchase? Are his financials completely correct?

Any help/advice would be very appreciated!

 
Most Helpful

Yes, and to add on to this, you need to make sure that the property is delivered lien free (with obvious standing exception for property taxes).

With respect to the planning board, as long as their pending decision/judgment doesn't involve the property in question, it shouldn't concern you (i.e., if he did something to the property/went forward with a development that was not approved/didn't get delivered up to code or agreement).

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