CHAPTER 9 - § 9.13 • PROTECTIONS FOR PURCHASERS IN POSSESSION OF REAL PROPERTY UNDER EXECUTORY CONTRACTS

• Jurisdiction: Colorado

§ 9.13 • PROTECTIONS FOR PURCHASERS IN POSSESSION OF REAL PROPERTY UNDER EXECUTORY CONTRACTS

The Bankruptcy Code provides that when a debtor (as seller) rejects an executory contract for the sale of real property, the purchaser, if the purchaser is in possession, may either treat the contract as terminated and file a proof of claim for pre-petition damages in the amount of the purchaser's loss of the benefit of his or her bargain, or, in the alternative, the purchaser may remain in possession of the real property. 11 U.S.C. § 365(i)(2) provides:

If such purchaser remains in possession—
(A) such purchaser shall continue to make all payments due under such contract, but may, offset

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