Legal Question in Real Estate Law in Massachusetts
Confict of Interest?
I recently purchased a condo. I leanred from the seller that the bank's attorney is also his attorney. Is this a conflict of interest?
3 Answers from Attorneys
Re: Confict of Interest?
The short answer: "Yes."
Normally, the attorney would have to pick a client, because the interests of the two clients are likely adverse, i.e., the Seller's interests are not aligned with the bank's interests, unlike the situation where the bank's attorney represents the purchaser (borrower).
If the Seller's attorney represented your lender in the transaction, the Seller's attorney has exposure to both the Seller and the bank, in addition to certain obligations to you.
What did your attorney think about the Seller's attorney representing the Seller and the Lender?
Confict of Interest?
Usually no.
However, if you think there is a conflict, what do you think it is?
Re: Confict of Interest?
In situations such as this, the Seller should make FULL disclusure of this fact from the start of negotiations. This could, quite possibly present confict questions/issues.
You would be wise to seek further legal consultation on this matter - particularly if you are unhappy about the condo or the transaction in general.