Securities compliance and investor liability
Hello everyone,
Have a question in regards to engagement with a real estate lawyer and the risk of being sued by investors if an investment in a Multifamily property.
Part of an engagement letter with a real estate lawyer reads like this:
“Attorney makes no guarantee whatsoever as to the investment outcome of the proposed venture, and Client is advised that Client may be sued for damages by investors under many theories of law should the investment fail, even if all securities compliance matters have been correctly implemented.”
The question I have is can you still be sued by investors if all correct paperwork and subscription agreements and liability waivers are agreed upon and filled out, investors are completely informed and aware of the investment they are getting into and the risks involved and all securities matters are correctly implemented?
I understand any investment comes with risks and you must do your due diligence when investing in a property to minimize theses risks. What else can be done to minimize these risks?
Thanks in advance for any help and hope all of you are well.