[WSBARP] Seeking Suggestions on Drafting Approaches to a PSA subject to a lawsuit

[msafren at jennylinglaw.com]

Hello Real Property Brain Trust,

 

I wanted to solicit your collective thoughts and suggestions on drafting
provisions in the purchase and sale agreement to protect the buyer of a
commercial property, when said commercial property is the subject of a
lawsuit from a previous buyer who defaulted on the purchase.  

 

Previous buyer initiated suit against the seller and lost.  Previous buyer
has filed an appeal and the appeal is still active.  As such, present buyer
is concerned that should previous buyer prevail in the appeal, the Court may
order the property to be sold to the previous buyer under the concept of
specific performance.

 

Since the lawsuits are part of the public records, the title company will
exclude such an event from the title policy coverage.  

 

My thoughts on a solution so far - 1) indemnification - have the seller
indemnify, hold harmless, and defend buyer in the event that previous buyer
makes any claims of ownership of property and 2) surety bond - have the
seller obtain a surety bond as a funding mechanism in the event that
previous buyer's claims diminish the value of buyer's ownership in the
property

 

I welcome all of your thoughts, advice, and input.

 

Thank you in advance

 

Warmest regards,

Michael S. Safren, Esq. 
Attorney at Law 

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005 
P: (206) 859-5098 | E:  <mailto:msafren at jennylinglaw.com>
msafren at jennylinglaw.com 
 <http://www.jennylinglaw.com/> www.jennylinglaw.com |
<http://www.facebook.com/jennylinglaw/> facebook.com/jennylinglaw/ 

 


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