Specific Liability Risks

Legal Due Diligence must also include a chapter on specific liability risks:

1. Acquisition of a business

  • Transfer of a business (CO 181)
  • Transfer of employment relationships (CO 333)

2. Poss. verbal agreements for leases

3. Development costs

4. Direct and indirect statutory charges

5. Any builders’ liens

6. Property taxes

  • Previous transfers of the real estate with or without a tax ruling
  • The circumstances surrounding the omission of suspended tax payments
  • Property tax lien(s)