I want to buy an operating business that includes real estate.  What are the differences if I do a stock sale versus an asset sale?

Through a purchase of business assets or the stock or membership interest in a company, a buyer can normally obtain the necessary rights to take over the operation of a business as a new owner. With an asset sale, the entity that operated the business before closing continues to be owned by the same sellers it had prior, but continues without any or limited assets, and the assets themselves get sold to a new entity owned and controlled by the buyer. With a stock or membership interest sale, the person owning all the stock or membership interest in a company that operates a business sells that stock or membership interest to the buyers, and the buyers continue to operate that entity as new shareholders or members. There are both risks and benefits to each type of sale. But if the assets include real estate, the buyer should certainly consider obtaining title insurance to cover the risks of adverse interests in the real estate. Whether you are receiving a deed to the real estate in an asset sale, or the membership interest in the company that owns real estate, local title companies are able to issue policies of insurance to cover the risk of adverse interest.