Brokers: Rely on Broker Statements at Your Peril

Posted on September 30, 2015 by BankruptcyRealEstateInsights

Alamo Group, LLC v. A & G Realty Partners, LLC (In re OSC 1 Liquidating Corp.), 529 B.R. 825 (Bankr. D. Del. 2015) –

A purchaser of debtors’ lease designation rights filed a complaint in bankruptcy court against the debtors’ real estate brokers for fraudulent misrepresentation.  The brokers moved to dismiss the complaint. Continue reading →

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Property Surrender: Surrender Means Surrender – Really

Posted on September 23, 2015 by BankruptcyRealEstateInsights

In re Failla, 529 B.R. 786 (Bankr. S.D. Fla. 2014) –

Individual chapter 7 debtors filed a statement of intention electing to surrender their real estate.  The mortgagee contended that they had failed to do so and filed a motion to compel to surrender.  Continue reading →

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Broker Commissions: Technical Requirements Trump Equitable Considerations

Posted on September 16, 2015 by BankruptcyRealEstateInsights

In re Oak Knoll Assocs., L.P., 525 B.R. 175 (Bankr. D. Me. 2015) –

A real estate broker sought allowance of an administrative expense claim for his commission in connection with a sale of real estate.  The debtor and its general partner objected and moved for summary judgment. Continue reading →

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Strong Arm Powers: Does Sovereign Immunity Trump a Claim Based on State Law?

Posted on September 9, 2015 by BankruptcyRealEstateInsights

Kohut v. Wayne County Treasurer (In re Lewiston), 528 B.R. 387 (Bankr. E.D. Mich. 2015) –

The debtor made property tax payments on behalf of several real estate projects.  The chapter 7 trustee sought to recover those payments from the county as fraudulent transfers.  The County raised sovereign immunity as a defense. Continue reading →

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Settlement Proceeds: When Does Cash Become Quasi Real Estate?

Posted on September 2, 2015 by BankruptcyRealEstateInsights

Farmer v. Citizens Nat’l Bank of Athens (In re Davis), 528 B.R. 757 (Bankr. E.D. Tenn. 2015) –

A chapter 7 trustee sought a court determination that the trustee had a superior claim to settlement proceeds arising from damage to real property.  His argument was that they constituted general intangibles under the Uniform Commercial Code (UCC), and the claim of the mortgagee of the real property was junior because it did not perfect its interest by filing a UCC financing statement. Continue reading →

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Title Insurance: When Does a Construction Lender “Create” or “Suffer” a Mechanics Lien?

Posted on August 26, 2015 by BankruptcyRealEstateInsights

BB Syndication Services, Inc. v. First American Title Ins. Co., 785 F.3d 825 (7th Cir. 2015) –

A construction lender sued a title insurance company seeking defense and indemnification in connection with claims in a developer’s bankruptcy.  The district court found that the title company had a duty to defend but no duty to indemnify.  The lender appealed the ruling on the duty to indemnify to the 7th Circuit. Continue reading →

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