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Enlisting the counsel of an attorney is a necessary part of any real estate deal. Whether for general investment oversight or to oversee specific terms of the deal, an understanding of the integral legal stipulations is essential to any real estate deal. An attorney’s involvement has a tremendous influence on the outcome of any real estate deal. Often, the counsel provided by attorneys has the power to sway a deal towards a negative or positive outcome for all parties involved. An overly aggressive attorney or one not specialized in real estate law has the potential to ruin good deals. For novice and beginner investors especially, it can be intimidating to negotiate with attorneys in a real estate deal. Investors and attorneys need to enter into a real estate deal with an open, cooperative attitude to ensure a successful transaction for all parties.
Robert Gidel, Jr. is a real estate attorney with just this mindset. He believes that an attorney should serve as an adviser to their client and not commandeer the transaction. Robert knows that communication is the key to a successful real estate transaction. This episode, Robert shares tips to help investors, sellers, brokers and attorneys get the best out of a real estate deal.
- Effective Communication
- Prevents extraneous fees, missed deadlines, cancelled deals
- All parties should remain open and up-front
- Possible Risk vs. Plausible Risk
- Attorneys often draft generic risk-assessments on properties. Investors should know how to identify plausible problems apart from possible problems
- Have real estate brokers involved in risk-assessment discussions
- Allow attorney to understand specific intentions for investment
- Attorneys in Negotiations
- Several approaches: collaborative, adversarial and competitive
- Collaborative is most effective in terms of cost and time
- Attorneys should approach negotiations from a holistic perspective; they should represent their client but understand other party’s perspective
- Extent of Attorney Engagement
- Always outline attorney’s involvement with deal explicitly with Engagement Letters
- Always retain attorneys specialized in certain aspects of real estate transactions. Ill-prepared or under-certified attorneys may delay or prevent deals
- Clients should have attorneys provide up-front estimates for fees based off past experiences