Defense Digest

On the Pulse ... MDWC&G'S Real Estate Liability Practice Group

As the Professional Liability Department's Vice-Chairman, I am very pleased to introduce you to our firm's Real Estate E&O Liability Practice Group--one of the many specialized disciplines within our Professional Liability Department.

Because the current judicial trend is to expand the liability of real estate professionals, an understanding of the inter-relationship between all parties involved in a real estate transaction is critical. Realty claims and suits also command a familiarity of the documents used in real estate transactions. Our attorneys possess the essential understanding of real estate transactions—thus, our clients never are exposed to a litigation "learning curve."

In each of our seventeen offices, we have attorneys who possess keen knowledge of the relevant statutes, regulations, local requirements, and case law that govern and impact upon realty professionals. The group's litigation experience includes initial negotiations, real estate commission claims, human relation claims, arbitration proceedings and jury trials in state and federal courts.

The attorneys in our Real Estate E&O Practice Group have defended the following realty professionals in hundreds of cases:

Owners and developers
Real estate agents
Real estate brokers
Title agents
Home inspectors
Appraisers
Surveyors
Abstractors
Banks and mortgage professionals

More specifically, our attorneys have successfully defended real estate licensees, in both state and federal courts, involving allegations that sellers and licensees have failed to disclose known material defects with respect to real property and/or have made affirmative misrepresentations regarding conditions of real property. In such cases, our attorneys generally possess a competitive advantage because they are familiar with the licensing Acts and accompanying Regulations, as well as the various states' seller's disclosure laws.

By way of further example, our attorneys also have expertise in defending title agents against claims for indemnity made by title insurance underwriters and in claims by third parties/insureds arising from the handling of real estate closings. Our attorneys possess a working knowledge of the Real Estate Settlement Procedures Act and the policies and contractual relationships governing the interrelationship between parties in these cases.

Additionally, our attorneys have represented real estate licensees and appraisers before state licensing boards and commissions. We are familiar with the practical day-to-day issues real estate professionals face. Moreover, we can identify developments and trends in the industry before they become apparent to the legal and insurance communities at large.

As part of a litigation firm, we are committed to litigating these cases when necessary. We are keenly mindful, however, of our clients' financial stake in defending these professional claims, and we are often able to obtain favorable early settlements—fully consistent with MDWC&G's and our clients' mutual goal of attaining a fair, cost-effective, and efficient defense.

Our attorneys are adept at identifying the core issues in these cases and in working closely with you, our clients, to ascertain whether a non-litigation remedy exists or whether alternative dispute resolution is more appropriate.

We have negotiated multiple settlements with the Commonwealth to avoid prosecution of realtors and real estate appraisers. We have assisted and advised local Boards of Realtors in arbitration proceedings conducted by those Boards. We have assisted in drafting Pennsylvania additions to the National Association Of Realtors Code of Ethics and Arbitration Manual.

We have provided advice and counsel to the Pennsylvania Association of Realtors on contract, employment, Real Estate Licensing Act and other issues. We have provided seminars to realtors on legislative and other current realty trends and developments.

Due to our multi-state presence, we have the demonstrated capability to write handbooks for our clients that have synthesized the laws applicable to home inspectors. We have also prepared state-by-state guides that catalogue for easy reference the necessary documents used in real estate transactions.

Because our attorneys take great pride in the expertise they have acquired and maintain in this discipline, we would be pleased to present a seminar to any of our readers on matters pertaining to risk avoidance and claims and lawsuits against realty professionals. You may contact me directly if you have any interest in this regard.

Thank you for your continued support of our firm.

* Chris, a shareholder in our Philadelphia, Pennsylvania, office, can be reached at cedougherty@mdwcg.com or (215) 575-2733.