Collection Problems
Purchase a rental building and later find out the previous owner had numerous non-payers. They pay me, but I find out legal action had been pending on them prior to the sale. Is the seller under any obligation to disclose collection problems related to the contracts (leases) he is transferring to me?
Your lawyer should look into this, as if the Seller was having collections problems, and sold without disclosing and divulging this to you, he may have been guilty of fraud.
You of course should never buy without having the seller state in writing the exact status of each and every rental agreement, delinquency, etc., as rents, collected and uncollected would very much impact the sales price, terms, etc.