Recently, John Deere purchased the stock of a local corporation owned by a husband and wife. A difficulty arose when John Deere preferred not to sign a transfer of leased equipment. Since they were purchasing the stock, there was no legal requirement for them to sign any papers with the leasing company. Yet the seller did not want the liability. He was aware that a lawsuit for any reason would involve him as an individual, meaning he not only had personal liability, but would have to pay an attorney for his defense in anything involving the corporation.
People sue for all types of reasons.
Their attorneys will name everyone they can in an effort to bring pressure to their favor. Little details unattended to can not only interrupt a sale, they can kill it or contribute to unnecessary legal problems after the sale. One such detail is a seller's personal guarantee on loans or leases. Both buyers and sellers should review all loans and leases. Both parties should insure the loans and leases are either fully paid off in escrow or the lease assumption or transfer agreements are completed before escrow closes.