Atty/Broker Conflict of Interest
I am selling my condo and hope to close on an offer that just came in. My broker recommended a particular RE lawyer to do the contract of sale and closing. Does anyone foresee a problem using a real estate attorney who came recommended by our broker? Any possible conflict of interest in this scenario?…
I am selling my condo and hope to close on an offer that just came in. My broker recommended a particular RE lawyer to do the contract of sale and closing. Does anyone foresee a problem using a real estate attorney who came recommended by our broker? Any possible conflict of interest in this scenario? any reason why the lawyer might not have our best interests at heart?
Yeah the worst thing is a lawyer who doesn’t know how to close in NYC. On seller I dealt with had a personal lawyer who wanted to do the process according to her textbooks and it didn’t go well.
I second what jnjnjn2 says. At the very least a broker is going to recommend a lawyer who deals primarily with real estate. This is a good thing when/if things become a problem. other lawyers that do not deal with the ins and outs of real estate in NYC can be a liability to you. Do not ever use the lawyer who is a family friend but doesn’t really do much real estate work.
There’s no conflict per se – their interests are the same, and neither the lawyer nor the broker stands to gain anything from a botched closing – if the broker recommends a bad lawyer to a client, or vice-versa, then in the end, it will reflect poorly on both parties and they will both lose potential future business. These people depend on repeat business and good word of mouth from their clients, so its in their interests to make referrals to competent professionals.
David Fainkick
david@dfainkich.com
he was recommended to me by my “buyers broker” and I used him subsequently for additional legal work. He’s now working on my estate.
Highly recommended
many thanks for this feedback – will consider indie attys
It’s a bigger conflict when the broker gives the buyer an attorney referral. But you want someone independent nonetheless.
otoh, I used a broker-recommended atty for two transactions and was completely happy. If you like your broker, maybe you’d like their atty.
Yeah, I would just go with an independent attorney.
I’d avoid this situation. We didn’t, and while our first closing with a lawyer recommended by our broker went smoothly, the next one didn’t. I just felt like the lawyer was trying to bulldoze us into closing as fast as possible, perhaps so the broker would throw more business his way.
I’ve also come to realize that brokers know absolutely nothing about the law.
In other words, find a lawyer through friends or others whom you trust.