The American Bar Association (ABA) completed a study analyzing the types of claims made against law firms during 2008-2011. Claims stemming from errors in real estate transactions were the most frequent. The report outlines that “preparation, filing, and transmittal of documents” was the primary source of claims with “advice” being the second largest. Previous ABA reports show that “failure to file a document – no deadline” was also a leading source of mistakes.
Calculated Risk Advisors explains that individual title agents and owners of title agencies can also learn from this study. All personnel should be well versed in document handling protocols and timelines in order to prevent lawsuits. “Advice” should also be carefully researched and within the scope of the agent’s work and knowledge. Contact a broker today to further discuss ways to further mitigate your title agency’s risks.