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Writer's pictureThe Galante Group

Bankruptcy & Real Estate


POWERS OF THE COURT: The Bankruptcy Code is Federal Law, and is superior to any state statute. These powers can be used, to make the sale of a property possible, where liens or disputes, might otherwise have prevented the sale.

PROFESSIONALS OF THE ESTATE: A Realtor’s employment must be pre-approved by the Bankruptcy Court. The Realtor must be a “disinterested” party. Which may preclude the Realtor from simultaneously representing any prospective buyer. Any simultaneous representation must be pre-approved by the judge. These approvals are usually obtained by the Attorney for the Debtor. Full disclosure is an absolute must. Any failure to disclose potential conflicts, can result in disallowance of compensation.

PROPERTY NEEDS A FACELIFT: Taking on new debt requires court approval. If the property needs sprucing up, painting, carpeting, staging, the court will need to approve these costs, if the expenses will be in addition to the sales commission.

STATUS OF TITLE IS IMPORTANT: Contact your Ticor Representative immediately, to obtain a Title Report. In order to determine any issues, that will require court intervention. Court Orders related to the special powers of the court, can take time to obtain. To avoid delays, be sure to provide a completed Statement of Information for the Seller, when requesting the Title Report. Let your Representative know that there is an active Bankruptcy, and that you will need all lien information, including General Index Liens.

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