What is the name of your state? VA
Last year I sold two properties to a developer. At the last minute the developer asked me to carry $65k of the debt for a term of 30 days in return for $3000 more than the agreed upon sale price. I was hesitant but agreed on the condition that they give me a legal document stating that if the principal wasn't paid at the end of 30 days, they would pay a $500 per day penalty. They agreed both verbally and by having their lawyer produce the document. I didn't have an attorney of my own examine the document. I did have the closing company that I used examine it and they said that it should hold up in a court of law. I know that was a stupid decision on my part. Since retaining an attorney and giving him all of the paperwork and the specifics of the case I've learned that the $500 per day penalty is not legally enforceable. My attorney doesn't specialize in that area of law so he is of no help in that situation.
My questions are...
1: Did their lawyer, in producing a document that he knew was legally unenforceable breach ethics or commit malpractice?
2: If so, what recourse do I have? His malpractice insurance? Errors and omissions insurance?
Thank you for any help or advice that you can offer in this!
Last year I sold two properties to a developer. At the last minute the developer asked me to carry $65k of the debt for a term of 30 days in return for $3000 more than the agreed upon sale price. I was hesitant but agreed on the condition that they give me a legal document stating that if the principal wasn't paid at the end of 30 days, they would pay a $500 per day penalty. They agreed both verbally and by having their lawyer produce the document. I didn't have an attorney of my own examine the document. I did have the closing company that I used examine it and they said that it should hold up in a court of law. I know that was a stupid decision on my part. Since retaining an attorney and giving him all of the paperwork and the specifics of the case I've learned that the $500 per day penalty is not legally enforceable. My attorney doesn't specialize in that area of law so he is of no help in that situation.
My questions are...
1: Did their lawyer, in producing a document that he knew was legally unenforceable breach ethics or commit malpractice?
2: If so, what recourse do I have? His malpractice insurance? Errors and omissions insurance?
Thank you for any help or advice that you can offer in this!
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