SURVEY COMMENTS
by Courtland Traver*
The areas of real estate practice have changed significantly over the past twenty years, and the survey results dramatically show this change. The composition of the real estate section membership has also changed surprisingly. The fact that the average years in practice (over twenty years) of our members show that our section is apparently not attracting the younger real estate practitioners. I would suggest that our leadership approve a task force to look into this. The task force should try to determine why this has happened and what must be done to make the section more attractive to the younger real estate practitioners. The task force should recommend specific changes to assure that the section=s membership and its programs are meeting the needs of all real estate practitioners in Virginia.
SURVEY RESPONSES
1. Average years in practice of all responses is very close to 22 years. We are a graying section!
2. All 48 who responded
were involved 100% of their time in real estate matters in some form , i.e.,
title company agents/employees, residential house closings, and commercial real
estate transactions, both as in house and outside counsel.
3. Well less than 50% had a leasing practice of any kind.
4. Only a very small number of respondents had a real estate litigation practice at all. Query: Is litigation of real estate matters not occurring or are all real estate litigation matters being handled by trial lawyers who do not consider themselves real estate lawyers? Is this a good thing?
5. Only a very few reported that they represented developers (i.e., in house or as outside counsel).
6. Percentage of practice by practice area: (a) 20%, solo residential practice; (b) 20% worked for or represented title companies exclusively; (3) Of the remaining 60%, 50% were in small firms and 10% come from larger firms.
7. The geographic distribution
of the respondents was 30% from cities and 20% from rural areas, with the remaining
50% being from either suburban or urban areas.
8. Most indicated that their clients were ones that they were responsible for
acquiring and maintaining, and that the average age of a relationship of a real
estate client was close to 10 years. Such longevity is counter to what has been
the current teaching about client longevity with the current average being only
approximately 2 and 3 years.
9. The respondents reported that other nonlawyer real estate professionals such
as agents and brokers (commercial or residential) were the source of many of
their clients.
10. In response to a question about the future source of new clients, most all felt that they saw no future in residential transactions and that in time all would be handled by nonlawyers, mostly by the title companies. They felt that nonlawyer involvement in residential transactions was not in the best interest of buyers or sellers, but saw no way to stop this trend. The respondents were uncertain about when and how or from where new real estate clients would come.
11. Almost all looked to the CLE programs presented by the law foundation as their only source of CLE credits.
12. Several suggested that
the interplay of a real estate expertise and expertise in wills and trusts in
Virginia would be worthy of a CLE program. Many thought that commercial leasing
was an area which would expand in the future and suggested that a CLE topic
on this area would be helpful.
13. All who responded felt that their practice area and clients were stable
and expected little or no change in their practice area in the future.
14. All who responded indicated
that they were becoming more specialized, and this trend did not put them at
risk.
15. Many felt that there was a decline in the amount of time they spent in reviewing
real estate title matters, title binders, and title policies and title policy
endorsements, and that this is causing this expertise to be lost and will likely
become solely the province of title companies and title company lawyers.
16. Every single respondent
indicated that a mentor or mentors was from whom they had learned their real
estate skills. Comments: As a reflection on the fact that mentors have passed
on their "lore," I wonder how many respondents would consider themselves
mentors. If not many feel this to be, then what is the future of our practice
area if no one is teaching the next generation of real estate lawyers?
17. Responses were unanimous that there must be more contact with and better
cooperation between the real estate section of the Virginia Bar Association
and our section. Furthermore, all indicated that the real estate profession
in general was not having the legislative presence and influence that were appropriate
and needed.
18. The respondents indicated that they all do some UCC work and some zoning matters as part of their practice, although neither was a large practice area for any of them.
19. All respondents indicated
that they see many significant changes coming in the near future. The suggested
causes for these changes are first that a complete transition of all aspects
of residential transactions to lay people, title companies, and residential
lenders will occur. Second, the title companies are becoming more involved in
not just residential transactions, but commercial transactions as well. Further,
between the title companies and the lenders' inside/outside counsel, there will
be little work left for our section members.
Finally, the respondents who worked for or with title companies all indicated
that they are seeing a declining amount of real expertise in the lawyers handling
minor and major real estate transactions today. It may be that this trend is
coming about because non-real estate lawyers are involved more frequently in
large real estate transactions than ever before and that they feel that any
needed real estate expertise will be provided by the title companies and their
lawyers. This particular conclusion is a very troublesome one and needs to be
addressed by our section leadership.
*Courtland L. Traver practiced with McGuireWoods, L.L.P., and now lives in Williamsburg, Virginia where he is Co-Editor of the FEE SIMPLE.