Real estate transactions are often the costliest undertakings individuals ever complete. People buying or selling homes have a lot of exposure during that process. Those seeking to acquire or list commercial properties also need to think about protecting themselves financially and legally.
One of the best ways to limit the risk inherent in a real estate transaction is to work with an attorney. Lawyers can craft custom documents, perform title reviews, assist with the buyer’s due diligence and navigate any conflicts that arise. Unfortunately, not all attorneys provide their clients with the same standard of representation.
Some lawyers cut corners or become complacent after years of practice. They may primarily practice another type of law and may take a client on without any real experience or specialized training. They may then fail to provide a professional standard of representation to buyers or sellers preparing for a real estate transaction. Their legal malpractice can result in lasting consequences for the clients that trust them.
How might a legal professional’s malpractice impact the financial circumstances of their clients?
Clients may overpay for a property
One of the very important services that real estate attorneys provide is support during the title research and due diligence stages. For those seeking to acquire commercial or residential real estate, having help while reviewing title records, property disclosures and inspection reports can help them identify properties that may not suit their needs.
They can also potentially avoid overpaying for a property that requires repairs or has other concerning defects. When a lawyer doesn’t properly handle their responsibilities leading up to a transaction, buyers may end up locked into ownership of a property that isn’t ideal given their needs and finances.
Clients may end up legally exposed
The agreements that buyers and sellers negotiate influence what obligations they have to each other and help to protect their resources. Sellers need help putting together disclosures that protect them from claims related to property defects. They need to know what the law requires and how to minimize their exposure.
Buyers need contracts that include appropriate contingencies. They may also need specialized secondary documents, like post-closing occupancy agreements, that help them navigate unusual circumstances. Otherwise, they could face insurance issues or problems when the seller won’t leave.
If an attorney uses cut-and-paste documents instead of creating custom paperwork or if they fail to identify some of the risks involved in a proposed transaction, their clients may end up facing direct liability or protracted legal disputes. People who acquire legal assistance for transactions that represent years of their income should be able to trust the professionals they hire.
Those negatively affected by a real estate attorney’s negligence or bad advice may need to consider pursuing a legal malpractice lawsuit. Taking legal action can lead to compensation for those affected by a lawyer’s oversights, ethical failures or incompetence.