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Updated almost 6 years ago,

User Stats

386
Posts
271
Votes
Greg Scully
  • Rental Property Investor
  • Johnson City TN
271
Votes |
386
Posts

Lis Pendens revealed in PSA negotiation...options?

Greg Scully
  • Rental Property Investor
  • Johnson City TN
Posted

We're negotiating a PSA on a multifamily property in Tennessee.  The seller has disclosed a pending lawsuit against the Trust that owns the property stemming from a fall that resulted in injury.  Potential lenders have already stated that this would need to be resolved prior to closing.  My initial research shows that pending litigation does not necessarily mean the seller CANNOT sell the property, but it may make it more difficult.  

Can anyone share strategies for buying a property where legal action is pending against the owner?

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