Advising Liquidators/Bankruptcy Trustees on Selling Land
If a company that owns land goes into liquidation, the liquidator has power to sell that land as an agent of the company. We advise liquidators about the legal risks they need to manage when selling land on behalf of a company. Liquidators need to be careful about making any statements about the property that could be relied on by potential buyers, who could sue the liquidator for misrepresentation. Silence as to any important matter that the liquidator should know or should’ve been aware of can also constitute misrepresentation. We recommend that an inspection of the property be conducted to manage risk, and to uncover issues that need to be disclosed to the buyer that the liquidator is unaware of.
Another method of managing risk is for liquidators is to obtain a personal indemnity from a director of the company in liquidation in respect of any liabilities arising from the sale of the property.
If you require any assistance with selling property as a liquidator or bankruptcy trustee, or want advice on the sale and purchase of land generally, contact us.