*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.
Q: “Can I list a property when the seller is in the middle of bankruptcy?”
A: As with lots of things, it depends. Bankruptcy proceedings put a halt on most big transactions unless and until the bankruptcy judge approves them.
While you might be able to list the house, a ratified contract would most likely have to go before the court and the judge would have to allow the actual transaction. In situations where your seller is in bankruptcy, your best bet is to work closely with the seller’s bankruptcy attorney to ensure that everything is being done according to the wishes of the court.
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