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!
I'd recommend consulting an attorney, but generally speaking, as the buyer you should be indemnified and not liable for the negative legal outcomes that current ownership is tied up in.
Just make sure no one will have the right to take the property from you.
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).
he's right, first thing that popped up in my head was lien wavers...
Get clear title from the big boys. I use FATCO cause they have the juice. Other than that, you're good.
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