This article is the third in a four-part series that examines how litigation—and, more specifically, its results—can shape the evolution of best practices in the real estate industry. The first article discussed some of the hazards of statutes of limitations; the second counseled caution in drafting “good guy guaranties” in light of certain developments in the case law.

This third article will focus on circumstances in which contractual or contract-like liability can arise even in the absence of a written contract, and the corresponding importance of a comprehensive drafting approach in order to avoid surprises.

The Issue

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