New York real estate attorney Robert Ivanhoe of Greenberg Traurig describes the difficulties of representing buyers in a real estate deal.
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Well, one thing that’s happened, particularly here in New York, is most properties are put up for sale through an auction process, and the brokers widely publicize the auction and the sale, and they go through this bidding process where there’s a first round of bids and then a second round and sometimes a third round, and ultimately there is a high bidder emerges from this process. What makes it very difficult on the lawyer’s side is, by the time your client has been designated the winning bidder, should that be the case, you have basically no time to finish a contract and do due diligence, and clients often don’t like to spend money in doing due diligence before they are selected as the winning bidder. So, that can be a risky proposition if they haven’t really done their homework under that process.