Real estate investments often involve complex transactions and significant financial stakes. An error by your attorney in contract drafting can lead to a missed lucrative deal and substantial losses. In some cases, the error could rise to the level of legal malpractice.
When does a real estate investor have a legal malpractice claim?
Legal malpractice occurs when an attorney fails to provide competent representation to a client. In the context of real estate, this can relate to errors in drafting contracts or a missed deadline that result in financial loss. To have a claim, the investor must prove several elements, often including:
- Duty: The attorney owed a duty to the investor.
- Breach: The attorney breached this duty through negligence or incompetence.
- Causation: This breach caused the investor’s losses.
- Damages: The investor suffered actual financial losses.
Evidence to help meet these elements can include drafts of the contract, records of all communications about the contract including emails and notes from meetings, financial documents outlining the financial losses as a result of the poorly drafted contract, and expert testimony to help show that the attorney’s actions did not meet the legal standard of care.
What damages are available for this type of claim?
Financial awards can include the loss as well as additional legal fees incurred in the legal malpractice case. In many cases, the attorney in question or their insurance company might offer a financial settlement to compensate for your losses. If a settlement is not possible, the case might go to trial. A court will assess the evidence and could award damages to cover your losses.
Experiencing a loss in a real estate deal due to an attorney’s error is frustrating and costly. However, understanding your rights and the legal mechanisms available can help you recover your investment and hold the responsible parties accountable.