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Terminating a Real Estate Listing Agreement
John:
filing bk creates an estate. Estate has a trustee. Trustee has all of the rights of the debtor before filing. Postbankruptcy is not hyphenated (see 549). Postbankrutpcy, the debtor has no right to reject a contract, or hire anyone.
If the debtor wants to hire a new broker, the debtor must file a motion to abandon the property from the estate. This abandonment moves the tax liability from the estate to the debtor.
You must think all of these concepts through before you give any advice.
However, if the debtor is completely insolvent, the debtor may not incur any more tax from the sale.
Send this debtor to a tax expert before you give any advice.
dennis
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A client entered into two listing agreements for the sale of two condos. He
later filed a Ch7 BK. He wants to terminate the listing agreements and post
BK retain new real estate broker to try to do a short sale. Can he do so?
Would he have to amend to list the present contracts as unliquidated and/or
contingent liabilities in Sch F and terminate the agreements in Sch G???
John Boyko
LAW OFFICES OF JOHN M. BOYKO
3521 Lomita Blvd., Suite 100
Torrance, CA 90505
310-750-6789 (Office)
310-300-0263 (Fax)
A client entered into two listing agreements for the sale of two condos. He later filed a Ch7 BK. He wants to terminate the listing agreements and post BK retain new real estate broker to try to do a short sale. Can he do so? Would he have to amend to list the present contracts as unliquidated and/or contingent liabilities in Sch F and terminate the agreements in Sch G???
-- John BoykoLAW OFFICES OF JOHN M. BOYKO3521 Lomita Blvd., Suite 100Torrance, CA 90505310-750-6789 (Office)310-300-0263 (Fax)
The post was migrated from Yahoo.