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Real Estate Malpractice Claims Fact Sheet

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As the price of real estate in Ontario has steadily risen, so has the dollar value of real estate claims, making it the second most costly area of law for LAWPRO.

Breakdown in lawyer/client communication is the most common cause of real estate claims. Busy, high-volume practices often lead to situations where the lawyer does not take the time to communicate with clients properly. Lawyers often rely on clerks, so the lawyer becomes removed from the process. If a claim arises, there is frequently inadequate documentation in the lawyer’s file to back up the lawyer’s version of what occurred. Spending more time meeting with clients and documenting discussions can be of great help in both preventing and defending a claim.

There has been a sharp increase in ‘inadequate investigation’ claims in recent years. As with communication claims, these result from busy lawyers not spending enough time on a file. Important information from the client is overlooked, or crucial details missed on surveys, condo status certificates or the agreement of purchase and sale. Despite the time pressures of a real estate practice, take the time to do it right and avoid short-cuts.

Download the full Fact Sheet (PDF) for detailed information.

Land Acknowledgement

The offices of LAWPRO are located on the traditional territory of many nations including the Mississaugas of the Credit, Anishnabeg, Chippewa, Haudenosaunee and Wendat peoples. Toronto is covered by Treaty 13 with the Mississaugas of the Credit. LAWPRO respects and acknowledges the histories, languages, knowledge systems, and cultures of First Nations, Metis, and Inuit nations.

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