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Buying & Selling a Business

Can I still get title insurance on property bought out of a receivership or bankruptcy sale?

TSL Written by the Treadstone Law team· Updated August 2026

Yes, title insurance is generally available for real property purchased through a receivership or bankruptcy sale, and many insurers are familiar with these kinds of transactions. A court-approved sale with a vesting order can actually make an insurer more comfortable, since the order itself is evidence that the transfer was properly authorized and, where the order says so, free of prior claims affecting title.

Insurers will still want to review the court order, the chain of title, and any specific carve-outs or exceptions in the vesting order before issuing a policy, and unusual or contested aspects of the receivership may draw extra underwriting attention or additional conditions. Raise the source of title with your title insurer and lawyer early in the process rather than assuming standard coverage will apply automatically without review, since the underwriting process for these purchases can take a closer look than a routine residential or commercial transaction would.

Key takeaways

  • Title insurance is generally available for property bought through receivership or bankruptcy sales.
  • A vesting order can make insurers more comfortable by evidencing proper authorization.
  • Insurers will review the court order and chain of title closely before issuing a policy.
  • Raise the source of title with your insurer and lawyer early rather than assuming automatic coverage.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone business lawyer can help.
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