In most real estate transactions, clients spend more time talking with their brokers than they do with their attorneys.
That makes sense. Brokers are often the first call, the ongoing sounding board, and the person guiding the day-to-day flow of the deal.
But that dynamic can create a gap, and that gap can lead to problems.
Where Communication Breaks Down
Clients share their goals, concerns, and plans freely with their broker, while keeping conversations with their attorney more focused and transactional.
The issue is that attorneys are making legal decisions and drafting agreements based only on what they’re told. When key details don’t make it into those conversations, opportunities are missed and risks surface later in the process.
A Missed 1031 Exchange Conversation
A recent situation illustrates this perfectly.
A client mentioned to his broker that he would likely need a 1031 exchange. That’s not a small detail. A 1031 exchange comes with strict timing requirements, and the structure of the transaction needs to account for those deadlines from the beginning. The problem was that he never mentioned it to his attorney.
By the time it came up, the transaction was already in motion.
That limited the ability to provide early guidance and, just as important, to build cooperation language into the contract. When a 1031 exchange is part of the plan, those provisions should be addressed upfront so all parties understand their role and obligations.
Waiting to address it later puts unnecessary pressure on the deal.
When Insurance Issues Arise Too Late
Another example came from the same transaction.
The client had experienced prior insurance claims on the property but hadn’t mentioned that. It only surfaced when the buyer had trouble securing insurance. At that point, the issue became reactive instead of proactive. Very often, buyer’s attorneys ask about prior insurance claims in the attorney review letter. Since that question was not asked, I was blindsided when the buyer could not get their mortgage because they could not get insurance for the property. There is something called the CLUE report (Comprehensive Loss Underwriting Exchange) that advises of insurance claims made on a property.
Had that information been shared earlier, the buyer’s attorney could have connected the client with a broker who specializes in hard-to-place insurance. Instead, the deal faced delays that could have been avoided with a simple conversation at the outset.
Why Full Transparency Leads to Better Outcomes
These situations aren’t unusual.
They’re the result of information being shared in one place but not another. Often Sellers will “confide” in their brokers and think that by not telling their attorney the secret will not come out. It is SO much easier to deal with facts and address them appropriately than to be surprised by them weeks into the transaction. It may be that there needs to be a price adjustment or a credit. But that is so much better than losing the contract and starting over – now with the secret in front of the attorney.
Brokers, attorneys, lenders, and other professionals each play a different role, but they rely on the same information to do their job well. When one piece is missing, it affects how the entire transaction is handled.
Clients don’t need to filter what they share with their attorney or decide what is legally relevant. That’s the attorney’s role. The more complete the information, the better the guidance.
The Advantage of Keeping Everyone Aligned
When your client’s attorney has the full picture, they can anticipate issues earlier, draft stronger agreements, and help keep the deal moving without unnecessary complications.
That doesn’t require more time or more effort. It simply requires consistency in what gets shared and who hears it.
If you’ve told your broker, your attorney should hear it too, because the difference between a smooth closing and a deal that starts to unravel rarely comes down to one big mistake. It’s usually the result of one small detail that was shared in the wrong place, or not shared at all.
The Minchella & Associates Difference
With over 40 years of experience in Illinois real estate law, Erica Minchella has represented thousands of home sellers and buyers, landlords, and commercial and investment property owners.
For more information, schedule a consultation today.
