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<p class="MsoNormal"><span style="font-size:11.0pt">If seller agrees to its continuing liability for the claim, put a paragraph about it in the purchase agreement. Describe the claim and state that any liability on the claim is seller’s and will continue to
be so after closing. Include an indemnity and hold harmless clause. And state that this provision survives closing.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">That solves any issue as between buyer and seller. I do not think Tenant-2 would have any claim against buyer, so you don’t need Tenant-2’s agreement to anything.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Rod Harmon<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D">RODNEY T. HARMON</span></b><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Attorney at Law</span></b><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> P.O. Box 1066</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Bothell, WA 98041</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Tel: (425) 402-7800</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Fax: (425) 458-9096</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="http://www.rodharmon.com/"><span style="color:#0563C1">www.rodharmon.com</span></a></span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="mailto:rodharmon@msn.com"><span style="color:#0563C1">rodharmon@msn.com</span></a></span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Info Contact<br>
<b>Sent:</b> Wednesday, January 17, 2024 3:47 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] CRE Transaction Question; Assumption of Liability/Indemnification?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif">Hi Everyone,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif">Fact pattern: Buyer (also Tenant-1) is purchasing commercial property - the unit Buyer is currently occupying plus other units - from Seller (also Landlord). Seller (Landlord) was apparently sued
by Tenant-2 at some point in the past (and lawsuit is on-going) for slip and fall injury in Tenant-2's unit. Tenant-2 claims Landlord did not repair the leak from the water line, resulting in standing water, causing Tenant-2 himself (not Tenant-2's patron)
to slip and fall. Buyer is purchasing the property, not Seller's (Landlord's) business or entity.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Georgia",serif">Question: Does Buyer assume all assets, liabilities, and risk from Seller, including on-going claims/lawsuits? </span></span><span style="font-family:"Georgia",serif">What's
the best way <span class="gmaildefault">Buyer can purchase the property but disavows such liabilities, if any? </span></span><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Georgia",serif">Thanks in advance for your help!</span></span><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Baskerville",serif;color:#6D2CB9">Chanvir Singh (CJ)</span><span style="font-size:9.0pt;font-family:"Georgia",serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black">Attorney<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black">Prime Legal Services<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black">14900 Interurban Ave. S., Suite 261<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black">Seattle, WA, 98168<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black">206.674.4585<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black"><a href="mailto:cj@lawpls.com" target="_blank">Email</a> | <a href="https://www.lawpls.com/attorney/singh-chanvir-c-j/" target="_blank">Bio</a> | <a href="https://www.lawpls.com/blog/" target="_blank">Law
Blog</a> | <a href="http://www.lawpls.com/" target="_blank">Website</a><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#222222">PRIVILEGED or PRIVATE COMMUNICATION: This communication is covered by the Electronic Communication Privacy Act, 18 U.S.C. 2510-2521. It may contain confidential information protected
by the Attorney-Client privilege. If you have received this message in error, or are not the person for whom the message was intended, please delete it from your system immediately, refrain from copying or forwarding any part of the message, and notify the
Prime Legal Services Immediately at (206) 674-4585.</span><span style="font-size:9.0pt;font-family:"Baskerville",serif;color:black"><o:p></o:p></span></p>
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