Legal Briefs

By Wayne M. Pitluck, Real Estate Business Magazine, June/July 2006

Avoiding Legal Potholes in Real Estate Transactions

Risk Reduction Strategies for Managers, Brokers and Owners

As a litigation attorney, I spent the first 15 years of my practice defending real estate brokerage clients in court and arbitration hearings. Over time, I grew frustrated with the inevitable impact of such litigation — an appalling waste of client resources (both financial and human) and a terribly negative effect on client businesses, even when they "won."

Part of my frustration derived from the fact that, with few exceptions, litigation could have been avoided or significantly minimized if the client had some simple rules and risk reduction tools in place. Consequently, I now design programs to minimize exposure to legal potholes on the path to completing a real estate transaction. The following guidelines are not "rocket science," but if taken seriously and implemented, they will significantly reduce your exposure to litigation.