Practice Pointer. There is added risk for buyer in purchasing the membership interest since they will be assuming any liabilities of the entity. This risk is not great for single-tenant buildings where the property is subject to a true NNN lease since owner in that situation is generally not managing the property and only collecting rents. The risk increases significantly if the selling entity is operating and managing the property. Bed bug litigation is an example of potential risk being assumed.
Appears in 2 contracts
Sources: Purchase Agreement, Purchase Agreement