According to a recent study by the ABA Standing Committee on Lawyers' Professional Liability, real estate remains one of the highest-risk practice areas for legal malpractice claims. (See, “Profile of Legal Malpractice Claims 2020-2023,” 9th Edition, by the ABA Standing Committee on Lawyers’ Professional Liability). The following practice pitfalls identify recurring areas of exposure for real estate attorneys, the circumstances that can increase risk, and practical steps attorneys can take to protect their clients and their practices.

1. Failing to Clearly Identify the Client

Real estate matters frequently involve owners of closely held businesses, family members, partners, developers, investors, lenders and other participants who may communicate directly with the attorney – even if they are not the actual client. A mistake we frequently see is the lawyer’s failure to clearly define and communicate to all parties involved who the attorney’s client is. When this happens, the attorney may unintentionally…