Malpractice Claims Against Real Estate Lawyers Climbing

Editor’s Analysis: As we predicted along time ago, the day would come when the best cases for litigators would be malpractice claims against lawyers who are dealing with real estate transactions. And as we have said before it includes bankruptcy lawyers, family law and a host of other cases where issues of title and validity of the loans might come into play.

It’s all starting in the commercial sector but it will spread to practically every other type of lawyer who is ignoring the securitization issues, the foreclosure crisis, and the mortgage meltdown.

For the first time, real estate lawyers are Number 1 in malpractice claims ahead of personal injury and other lawyers. And the problem is made worse by the fact that the seminars, for the most part, do NOT inform the attorneys of the probability of title problems arising out of transactions where their opinion on title almost seemed irrelevant. AND THAT in turn leads to the mistaken conclusion that this is a problem contained in the residential real estate market with homeowners who are deadbeats trying to get out of paying a legitimate debt. It remains a major issue as to whether the debt was ever legitimate as a secured transaction, and probably will lead to all sorts of problems for clients who relied upon their lawyers before entering into commercial or residential real estate transactions who who litigate those issues.

The bankruptcy lawyer who fails to understand the problem of showing the home as an asset secured by a mortgage is going to find himself and his carrier sued for malpractice if and when it is determined that the home was not secured and the creditor named was the wrong one, playing right into the hands of the banks and servicers.

Lawyer Beware!

Real Estate Lawyers face rising malpractice claims

Tags: lawyer malpractice
Posted in bubble, Corruption, Eviction, securities fraud |