The Limits of AI in Real Estate: Why Buyers and Sellers Still Need an Experienced Team

Artificial intelligence is everywhere right now — drafting contracts, answering questions, analyzing data, even “explaining” legal documents in seconds. It’s no surprise that buyers and sellers are starting to wonder:

Do I really need a lawyer or a full real estate team if AI can just tell me the answer?

The short answer: AI can be helpful — but it has real limits. And in real estate, those limits can be expensive.


AI Is a Tool. It Is Not Judgment.

AI excels at pulling together general information:

  • Explaining common contract clauses
  • Summarizing inspection reports
  • Flagging typical timelines or steps in a transaction

What AI cannot reliably do is apply judgment — the kind that comes from handling hundreds (or thousands) of real deals, across different municipalities, personalities, and risk profiles. AI cannot provide legal advice for your specific circumstances, nor can it replace an experienced agent’s input.

Real estate transactions are not plug-and-play. They are deeply contextual:

  • Local custom matters
  • Municipal rules matter
  • The people involved matter

AI does not know when something that looks “standard” is actually a red flag.


Real Estate Is Local — AI Is General

AI pulls from broad datasets. Real estate law and practice are intensely local.

A clause that is routine in one county can be problematic in another. A practice that works fine in one transaction can be disastrous in a slightly different scenario.

An experienced real estate attorney or agent knows:

  • Which issues routinely derail deals in your area
  • Which risks are theoretical versus real
  • When a small change now avoids a major problem later

AI can’t sit across the table from a local lender, municipal official, or opposing counsel and say, “I’ve seen this before — here’s how it actually plays out.”


AI Doesn’t Bear the Risk — You Do

One of the most important differences is this:

AI has no accountability.

If an AI-generated answer turns out to be wrong:

  • You can’t sue it
  • It doesn’t carry malpractice insurance
  • It doesn’t fix the problem

Your real estate team does.

Experienced professionals:

  • Stand behind their advice
  • Carry professional responsibility
  • Are invested in the outcome of your transaction

That accountability matters when you are involved in one of life’s largest personal transaction. six or seven figures are on the line.


Contracts Don’t Fail on the Obvious Issues

Most real estate problems don’t arise from the obvious, headline issues. They come from:

  • Timing misalignments
  • Ambiguous language
  • Unspoken assumptions
  • Unusual property history
  • Personality conflicts that escalate

AI is very good at answering the question you ask.
It is not good at identifying the question you didn’t realize you needed to ask.

That’s where experience shows up.


The Real Risk: False Confidence

Perhaps the biggest danger of relying too heavily on AI is false confidence.

AI answers are often:

  • Polished
  • Confident
  • Definitive-sounding

But real estate law is full of:

  • “It depends”
  • Exceptions
  • Strategic choices, not just correct answers

An experienced real estate team knows when certainty is an illusion — and when slowing down or pushing back is the smartest move.


The Best Use of AI in Real Estate

AI can be valuable when used correctly:

  • As a starting point for questions
  • To help clients understand terminology
  • To organize information

But it works best alongside an experienced real estate team — not instead of one.

Think of AI as a calculator. Helpful? Absolutely.
But you still want an expert who knows what to calculate — and why.


Bottom Line

AI is changing real estate, and that’s not a bad thing. But buying or selling property is still a legal, financial, and emotional transaction where judgment, experience, and accountability matter.

The smartest buyers and sellers don’t choose between AI or professionals.
They use AI with a trusted real estate team who knows how to see what the technology can’t.


23andMe Files for Bankruptcy—And Millions of Users’ DNA Data May Be Up for Sale

What Happened?

In a chilling turn of events, genetic testing giant 23andMe files for Chapter 11, prompting fears that your most personal data—your DNA—could be up for grabs.


DNA as a Commodity?

Genetic testing company 23andMe has officially filed for Chapter 11 bankruptcy protection, marking a dramatic fall for a company once synonymous with at-home DNA analysis. The bankruptcy filing, made public on Sunday, indicates the company is now courting bidders as it attempts to restructure.

This development raises serious concerns: With more than 14 million users worldwide, 23andMe holds one of the largest private genetic databases ever created. That data—your DNA—may now be considered a corporate asset.

While 23andMe has long promised it won’t sell personally identifiable information without consent, bankruptcy courts can override contracts in certain cases. That means privacy pledges made in good faith may no longer be enforceable.


Privacy Advocates Sound the Alarm

Digital rights organizations and privacy experts are voicing strong concerns about what happens next.

“This isn’t just user data—it’s genetic blueprints,” one privacy attorney noted. “Selling that data, even in anonymized form, could expose people to discrimination, privacy violations, or worse.”

And they’re not wrong. Even so-called “anonymized” DNA data can often be de-anonymized, especially when cross-referenced with other public databases. This opens the door for potential buyers—whether biotech firms, insurance companies, or foreign entities—to gain access to data far more personal than your search history or online behavior.


What Can I Do to Protect My Data?

If you’re a 23andMe user, you’re probably wondering: Can I still do anything to protect my DNA data?

The answer is yes—you can take action to remove your data from their system. But time may be of the essence.


🧬 Step-by-Step: How to Delete Your Data from 23andMe

  1. Log into your account
    Visit https://you.23andme.com and sign in.
  2. Go to Account Settings
    Click your profile image in the top-right corner, then choose Settings.
  3. Scroll to “Delete Your Data & Account”
    At the bottom of the page under Account, click on “Delete Your Data” or “Delete Account”.
  4. Choose What to Delete
    You’ll be prompted to:
  • Delete just your genetic data
  • Or delete your entire account and genetic data Select “Delete my account and all data.”
  1. Confirm Your Decision
    You’ll need to re-enter your password and confirm that this action is permanent and irreversible.
  2. Wait for Confirmation
    23andMe says data deletion may take up to 30 days. If your data was previously shared for research, deletion from third parties may not be possible.

A Cautionary Tale in the Age of Big Data

The 23andMe bankruptcy case serves as a warning for all of us: In a world where data is currency, your most personal information—your DNA—is the ultimate high-value asset.

When we share this kind of data with private companies, even for well-meaning reasons like health insights or ancestry tracking, we must also be prepared for the risks—especially when those companies face financial collapse.

For those who once swabbed their cheeks in search of family roots or genetic insight, the message is clear: now is the time to decide how much of yourself you want to leave behind.


What is an Operating Agreement and Why Do I Need One?

Why Your Limited Liability Company (LLC) Needs an Operating Agreement

Starting a business is an exciting venture, and forming a Limited Liability Company (LLC) is one of the most popular ways to structure a small business. While an LLC provides flexibility and liability protection, many business owners overlook one critical document: the operating agreement. Even if your state doesn’t legally require it, and New Jersey does not, having an operating agreement is essential to protect your business and ensure smooth operations. Here’s why your LLC needs one.

1. Defines Ownership and Management Structure

An operating agreement lays out the ownership percentages of each member and the management structure of the company. Whether your LLC is single-member or multi-member, this document clarifies roles and responsibilities, helping to prevent misunderstandings and conflicts down the line. Clearly defined roles and responsibilities means that disagreement and dispute are less likely as your business grows.

2. Protects Your Limited Liability Status

One of the main benefits of forming an LLC is the limited liability protection it offers its owners. However, without an operating agreement, courts may view your business as a sole proprietorship or partnership, exposing your personal assets to legal claims and debts. A well-drafted operating agreement reinforces the separation between your business and personal finances, strengthening your liability protection.

3. Prevents State Default Rules from Applying

Each state has default rules that govern LLCs without operating agreements. These one-size-fits-all regulations may not align with how you want to run your business. By drafting an operating agreement, you can customize provisions related to profit distribution, voting rights, and dispute resolution, ensuring they align with your business goals. This is, in my opinion, the single most important reason to have an operating agreement. Do not allow your business to be governed by default rules and regulations. Govern your business in the way YOU best see fit.

4. Clarifies Financial and Operational Decisions

Without a written agreement, decisions regarding profits, losses, capital contributions, and distributions could lead to disagreements among members. An operating agreement clearly defines these financial aspects, reducing the chances of disputes and providing a clear process for handling financial matters.

5. Facilitates Business Continuity and Succession Planning

What happens if a member decides to leave the business, passes away, or becomes incapacitated? An operating agreement outlines the process for transferring ownership, buying out a departing member, or dissolving the business if necessary. This ensures stability and continuity, preventing legal and financial headaches in the future.

6. Enhances Credibility with Banks and Investors

Financial institutions and potential investors often require an operating agreement before they agree to lend money or invest in your business. A well-structured agreement demonstrates professionalism and foresight, making your LLC more attractive to outside funding sources.

7. Establishes Conflict Resolution Procedures

Disagreements are inevitable in any business. An operating agreement provides a framework for resolving disputes among members, potentially avoiding costly and time-consuming litigation. Whether through mediation, arbitration, or a voting system, having a predefined conflict resolution process is invaluable.

Conclusion

While an operating agreement may not be legally required in every state, it is a crucial document that provides structure, legal protection, and clarity for your LLC. Investing the time and effort to create one now can prevent significant problems in the future, allowing you to focus on growing your business with confidence.

If you haven’t drafted an operating agreement for your LLC, consider consulting Bergmann Law, to ensure your agreement meets your specific needs. Your business’s success and protection depend on it!