[WSBARP] Title insurance to support due diligence for stock purchase transaction

[Bickel, Dwight]

A purchase of all the shares of a corporation is considered a sale of the real property. The real estate sales tax applies. The purchaser should require a title insurance policy to protect against loss due to the state of title or encumbrances on that title.

In addition, the purchaser should require a non-imputation [ALTA 15] endorsement to avoid the application of exclusions for Knowledge imputed from the selling shareholders. Premium rate schedules valid through June 30 provide premium discounts for the renewed owner's policy. However, all title company rate schedules will be completely new as of July 1 and we do not yet know what discounts will be available.

If the investor is acquiring only a fraction of the shares, less than 50%, then a new policy is not required and the ALTA 15.2 endorsement may be issued to the prior policy to avoid the application of the exclusions for Knowledge imputed from selling or continuing shareholders.
________________________________
NOTICE: The information contained in this message is proprietary and/or confidential and may be privileged. If you are not the intended recipient of this communication, you are hereby notified to: (i) delete the message and all copies; (ii) do not disclose, distribute or use the message in any manner; and (iii) notify the sender immediately.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20160613/abf5b216/attachment.html>