Overcoming Bad Advice from an Attorney – Fiduciary Broker Vlog #4

Hi, I’m Dan Collins – a Sacramento, California licensed real estate broker with expertise in real property matters involving Probates and Trusts. I am also a California licensed general contractor and I act as court appointed receiver administrator for the Superior Court.  If you have found yourself tasked with being an Executor administering a Probate or a Trustee in an estate, I can help you effectively execute your duties that attorneys do not help you with. To learn more, please visit my website: probate-realtor.biz

I am going to share a story about an attorney who asked me if I would be willing to serve as a Court Appointed Receiver. The attorney was called by a man whose siblings and he were involved in a trust litigation matter involving trust owned parcels of land. He was approached by this beneficiary who wanted his sister, who was acting as the Trustee to the estate, to take appropriate steps to sell some trust owned land parcels in the San Francisco Bay Area.

To determine if a receivership action was going to be effective, I performed some preliminary diligence and investigation about the subject land parcels, as well as the real estate brokers who had been trying to sell the parcels for over a year.

Because of my 30+ years’ experience entitling raw land for development both as an investor and as a real estate broker, I quickly saw why the Trustee had not been successful in selling the land parcels. To be truthful, neither the Trustee nor the real estate brokers were qualified to correctly position the land parcels for sale to a developer or perspective individual custom home builders.

Had the Trustee hired a qualified and experienced real estate broker to market the land parcels for sale, the litigation would probably have been avoided. But, because litigation was under way, the most expedient resolution would have been the appointment of a qualified Receiver who had experience in land entitlement and building speculative homes, because the land parcels highest and best use was single family home development.

I reported back to the attorney who had expressed an interest in nominating me as the receiver and outlined the problems in the current approach employed by the Trustee. The attorney then called his prospective client and told her that he felt I would be well qualified to expedite a resolution to the trust litigation and then find an experienced land broker to market, enter into a contract of sale, complete the necessary buyer’s diligence and close the sale with a Receiver’s Deed.

Unfortunately, some bad advice from an attorney thwarted the plan.  One of the siblings had another attorney who told her it would not be possible to have the Court appoint a receiver.  Of course, that was nonsense.  In my opinion, that attorney did their client a disservice by not giving advice that would have been in everyone’s best interest – best for everyone but the attorney, of course!

I believe attorneys should, like many other professions, work in areas where they have real expertise and stay away from areas where they are not competent. Many attorneys do not realize the equity benefits of employing a neutral Receiver in litigation to allow expedient resolution to conflicts.  In other cases, some attorneys may not want expedient resolution because they only get paid so long as the conflict goes on.

If your attorney advises against using a receiver or seems disinterested in finding an expedited resolution to a problem, how can you overcome that bad advice?  Give me a call.  I’ll either help you find a different attorney, or explain to your attorney how beneficial it can be to appoint a neutral third party to resolve litigation.  Don’t let an attorney needlessly drag things out.  Remember, in a protracted litigation, the attorneys are usually the only ones who benefit.

My name is Dan Collins, I act as a “fiduciary broker” in probates and trusts that involve real property assets.  To learn more, please visit my website: probte-realtor.biz

Thank you for joining me today.

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