Foolish Mistakes Lawyers Make.
Previously, we looked at some foolish mistakes people make when using lawyers throughout their property investing journeys.
Now, let’s look at some foolish things that lawyers themselves have done.
Tried to sell people investment properties.
An everyday property spruiker is bad enough – but what if they are also your lawyer?
It would be quite a conflict of interest for a lawyer to give out investment advice in the attempt to sell you a property – and yet, there are some lawyers who do this.
When it comes to buying an investment property, it is better to seek advice from an independent lawyer who can align to your goals and make sure you are structured in a beneficial way.
Didn’t look after the client’s best interests.
Nathan recalls when he was 19 and about to embark on a deal that could have made him $500,000 by now – if his lawyer had followed direction.
Instead, his lawyer decided not to execute the contract despite Nathan’s instruction to do so. He was a family friend and didn’t go ahead with the steps needed to secure the deal. As a result, Nathan missed out on the property and the $500,000 that it has now gone up in value since.
Having poor communication skills.
When it comes to settling a property, it is helpful to have a lawyer with enough charm and charisma to get the deal done.
The cooling off period can be the most important time for negotiating the contract. You may need to extend the period before settlement or re-negotiate the price after the findings of a pest and building report come back negative.
A good lawyer should know when to be nice and when to be aggressive. After all, you want them to have your back so you come out of the deal in a good position.
Didn’t protect their clients from all aspects.
If you are buying a property, you are buying a very valuable asset. You want to make sure your lawyer can help you make educated decisions on every aspect of the deal, whether it be structuring, negotiating the contract or drawing up your Will.
One of the most important things to consider when choosing a lawyer is their field of expertise. It’s not really that helpful to go with a family friend if they specialise in criminal law. It would be the same as choosing your panel beater friend to be your mechanic.
Having a good success team will increase your chances at achieving your goals and decrease your chances at making costly mistakes – but only if the professionals you choose don’t make any foolish mistakes themselves.
Have you ever had a lawyer you wouldn’t recommend? Please share your experiences in the comments section below.