Search
 
Commentary

Unintended Consequences in Purchase and Sale Agreement Drafting: Liability Caps

Creating broad liability caps in purchase and sale agreements for commercial real estate can have a significant impact on potential title insurance claims.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Louis Monti is a partner in the Sullivan & Worcester.

In most commercial real estate transactions, one issue that is often heavily negotiated is the caps on seller’s potential post-closing liability. Although the title company is rarely involved in these negotiations, seller often tries to structure the caps in a way that may limit buyer’s title insurance coverage. Therefore, buyer should take steps to avoid this potential unintended consequence.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Recommended Stories

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.