Title Policy....As a wholesaler Do I need one?

[Charles J Price]

I’m unsure how I move forward in the space. I have a property, not yet under contract, that’s part of a restructuring plan. Due to the owner, who’s the broker, filing Chapter 11 bankruptcy. He has a hearing early June and if I work with him on the property he wants me to close in 30 days, the date of his hearing.  

First! In order to get the house under contract he wants me to give him a $2,000 nonrefundable deposit,commit to paying the remainder of the balance owed for the property, regardless of reassigning Of the property. I’m not sure legally how that’ll work since I only have a standard purchase and sales agreement for him to sign.

My concern is outside the aforementioned is possibly passing on liability to the new owners. Should this be my concern, do I need a title policy, do this sound strange too you, regarding the commitment to the property, how should I move forward?