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This clause is crucial in any subject to purchase and sale agreement. You want to make sure that youve got the seller on the hook. In this video, were going to cover the risk of a seller bankruptcy when youre buying property subject to an existing financing. And Im going to give you three crucial clauses that you need to include in your subject to agreements to protect your investments. All right. So why is it so important about protecting yourself from a seller bankruptcy when youre buying property subject to. Because heres what happens if the seller after youve bought the property files for bankruptcy, remember, theyre still on the loan. And whats going to happen is theyre going to roll into either a Chapter seven or a Chapter 13 bankruptcy, where a trustee is going to be appointed to oversee their financial affairs. And the trustee will see that the seller entered into the subject to transaction with you. And then the trustees job is to determine whether or not its in the
