Can a neutral third party, also licensed to practice law in the State of the transaction, lawfully prepare draft contract documents for review by the Attorneys for the Buyer and Seller of a business?
1 Answer from Attorneys
An attorney drafting a purchase/sales agreement for a business is not a neutral third party. He may be representing the buyer, the seller, a lender, a broker or numerous other possibilities. If he is representing more than 1 of the multitude of possibilities, he is facing serious potential conflicts of interest and related problems. If the potential conflicts of interest are fully disclosed, and you have independent advice from an attorney representing just you, those conflicts might be waivable. Just be aware that the drafting attorney is representing someone and you need to know who that someone is. If the buyer and seller both have independent counsel, why is the agreement being drafted by a third party? You would be better off having your attorney answer these questions. Good luck.
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