Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Buyers must be fully aware of the risks involved when purchasing property from distressed sellers, warns Norton Rose real estate partner David Hawkins.

Speaking in the tenth and final Legal Week Crisis Management Q&A in association with Norton Rose, Hawkins says that a good price does not always mean good value if the risks connected with the property are not identified and reflected in the price.

Hawkins (pictured) said: “It is important that a buyer appoints a professional team which has the capabilities and experience to review the information in the timescales available, and either from this or from other available sources, identify any risks and provide advice as to the significance of the risks when compared to what one would normally expect when buying a property.”

Given the number of companies currently experiencing financial difficulties, property buyers could potentially be exposed by a seller who is entering into an insolvency process. In such cases, buyers must to find out if it is still appropriate to deal with the seller rather than an insolvency practitioner on behalf of the seller.

In particular, a buyer should check that no winding-up petition has been presented against a corporate seller.

After doing this, the buyer will then be in a position to decide whether the price it is paying sufficiently reflects the additional risk and whether the transaction represents good value.

Watch the video here.

This premium content is reserved for
Legal Week Subscribers.


  • Trusted insight, news and analysis from the UK and across the globe
  • Connections to senior business lawyers within the leading law firms and legal departments
  • Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
  • The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
  • Optimized access on all of your devices: desktop, tablet and mobile
  • Complete access to the site's full archive of more than 56,000 articles

Already have an account?

For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651


Legal Week Newsletters & Alerts

Sign Up Today and Never Miss Another Story.

As part of your subscription, you can sign up for an unlimited number of a wide range of complimentary newsletters and alerts. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2019 American Lawyer Media International, LLC. All Rights Reserved.