<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Hello Real Property Brain Trust,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Since the lawsuits are part of the public records, the title company will exclude such an event from the title policy coverage. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I welcome all of your thoughts, advice, and input.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thank you in advance<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:black'>Warmest regards,<br><br></span><b><span style='font-size:12.0pt;color:purple'>Michael S. Safren, Esq.</span></b> <b><br></b><i>Attorney at Law</i> <br><br>14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 <br>11900 NE 1st St., Bldg. G - Ste. 300 | Bellevue, WA 98005 <br>P: (206) 859-5098 | E: <a href="mailto:msafren@jennylinglaw.com" target="_blank"><span style='color:blue'>msafren@jennylinglaw.com</span></a> <br><u><a href="http://www.jennylinglaw.com/" target="_blank"><span style='color:blue'>www.jennylinglaw.com</span></a></u> | <u><a href="http://www.facebook.com/jennylinglaw/" target="_blank"><span style='color:blue'>facebook.com/jennylinglaw/</span></a></u> <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><br><span style='font-size:8.0pt'>This communication, including attachments, may contain information that is confidential and protected by the attorney/client or other privileges. It constitutes non-public information intended to be conveyed only to the designated recipient(s). If the reader or recipient of this communication is not the intended recipient, an employee or agent of the intended recipient who is responsible for delivering it to the intended recipient, or you believe that you have received this communication in error, please notify the sender immediately by return e-mail and promptly delete this e-mail, including attachments without reading or saving them in any manner. The unauthorized use, dissemination, distribution, or reproduction of this e-mail, including attachments, is prohibited and may be unlawful. Receipt by anyone other than the intended recipient(s) is not a waiver of any attorney/client or other privilege.</span> <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>