New electrical checks and safety standards for Landlords8:59 AM, 15th January 2020
About 2 weeks ago 169
I know that due diligence is needed when buying Below Market Value “BMV” when the vendor is in financial difficulty. My understanding is that if the vendor is subsequently made bankrupt the sale can be overturned buy official receivers. However, if the buyer was to re-sell the property for a profit? Is the person who buys the property at this point still at risk if the original vendor goes bust?
For example, let’s say a property is on the market which was purchased for £105k a few months ago but its market value is say £150k. The estate agent advised the vendor not to sell at such a low price and even made him sign a letter to say it was against their advice. The same property is now back on the market at £140K. If I was to buy this property would I be putting myself at risk if the original vendor declares bankruptcy?
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