- Brokers, welcome to 2025! As we start the New Year, here are five things our legal team is paying close attention to. You should be too. Here they are...
Top 5 Real Estate Topics for 2025 (so far!)
- 1. New Real Estate Laws & Ordinances. A baker's dozen or more changes will affect closings this year, particularly for buyers and sellers of multi-unit buildings, and they go beyond the Northwest Side Preservation Ordinance. (More to follow). It's vital to stay current on these changes. Clients deserve nothing less.
2. New Contract Forms for Buying, Selling, and Leasing. CAR contracts are out. The 8.0 will be released shortly. Furthermore, CAR and the City of Evanston released revised residential leases. Everyone needs to know what has changed—what's new, what's been eliminated, and how things have moved around. Count on us to stay on top and ensure deals get documented correctly.
3. Broker's Compensation. There's still much confusion and lack of uniformity in the wake of last year's class action lawsuit settlements. We are still seeing many mistakes and expect more this spring. It's still the wild west. There is no uniformity in terms of "who pay how much, and to whom." A lot of buyers are disgruntled to find out they are paying their brokers "out of pocket" at closing. We can help everyone do a better job explaining - and documenting - broker compensation agreements. Let us if you have questions!
4. Evolving Wire Fraud Scams and Security Vulnerabilities. There is no shortage of creativity in the underworld. There are new and different means to commit wire fraud and identity theft. All real estate professionals need to do their part to promote client security and protect client funds. Our team continues to adapt our security best practices to meet changing ways criminals are hacking the system.
5. Diminishing Attorney Participation. More Outsourcing. Amidst all these changes, more and more lawyers seem to be doing less and less to support their clients and broker partners. We see many withdrawing from their roles as protectors, advisors, and advocates. Some firms refuse to "touch" wire transfer instructions, placing higher value on their own liability than the security of their client's funds.
Some law firms are outsourcing critical work to title companies and outside, third-party paralegal or clerking services. Some are using outside, contract lawyers, to "cover" closings for lawyers who have moved out of state or prefer to spend time on other matters. In fact, some firms direct that we stop contacting the attorney of record and only communicate with staff.
At our firm, we take our role as client counselors seriously. As the landscape evolves, we strive to stay a step ahead. As others do less work, we do more. That is what it takes to assure that our clients and broker partners close with confidence, while having the best experience possible.
If you want to talk about any of these hot topics, hit the button to schedule a call with me (Mike) or John. Let's talk.