The Hanover Insurance Group

Top five real estate attorney malpractice claims

Top five real estate attorney malpractice claims

According to the American Bar Association (ABA), real estate-related claims are now the most frequently filed among legal malpractice claims. Attorneys are held to a high standard of service, and if their service falls below this standard and the client suffers as a result, that attorney can be found to have been negligent, and be sued for malpractice.

Below are the most frequent of claims filed by clients against their attorneys.

  1. Inaccurate property description—an error is made in the preparation of a deed
  2. Cash back at closing fraud—buyer and seller collude to inflate purchase price in order to receive cash back at closing
  3. Vague lease language—a form lease agreement wasn't properly amended to protect the client's interest.
  4. Inadvertent attorney-client relationship—answering unrepresented party's questions at closing can inadvertently create an attorney-client relationship
  5. Attorney acting as escrow agent—holding escrow funds and letting a balance fall below full amount and/or releasing funds without an agreement from both parties

April 2018