Making offer while "In Litigation"

I am currently doing due diligence for my first park. In the process I noticed that insurance for this park went up by 30% from last year to this year. When I asked the seller about this he said:

“It went up do to a slip and fall accident that happened and is currently in litigation.”

What is the best procedure moving forward. Should I wait to purchase until the lawsuit is settled? Do a master lease until it is settled? I don’t want to be liable for any legalities that happened prior to my ownership.

Thanks in advance!

An attorney can advise you best on this, but as a general rule, a new owner is not liable for previous problems.

That said, you could be held liable if you purchase the LLC or other entity that owned the property prior. So be sure to not do that. Set up a new LLC. You would do well to take Dyches Boddiford’s class on land trusts and other structures for asset protection.