If a Seller Assumes the Buyer's Liability on the Property

question 19

True/False

If a seller assumes the buyer's liability on the property acquired, the buyer's adjusted basis for the property is increased by the amount of the liability assumed.

---

Definitions:

Inherently Dangerous

Activities or objects that carry a risk of harm or damage as a natural part of their existence or function.

Misrepresentation Liability

Legal accountability that arises when one party provides false information during a contract or negotiation, leading to harm or loss to another.

Vicarious Liability

A legal principle that holds an individual or entity responsible for the actions of another person, usually within the context of an employment relationship.

Operation of Law

A situation where rights or responsibilities are transferred without the direct action of the parties, often through the effect of legal statutes or regulations.