Posted by David M. Petrovich on May 04, 1999 at 19:35:38:
I am not an attorney, and in no way should this be construed as legal advice…
but my understanding is that the bankruptcy trustee must approve any and all financial transactions involving the Debtor that exceed (I think) $200. That includes the sale of his property.
Additionally, any real estate agent or broker that ‘lists’ a property whose owner is in bankruptcy may be in for a shock. The listing agreement is invalid because the homeowner (s) did not have the capacity to enter into a listing agreement unless specifically approved (in advance) by the bankruptcy trustee.
If the listed property sells without prior approval, the trustee can void the listing agreement, and seize the real estate commission while permitting the sale to go through.
But, check with an attorney on this as this info may be dated.