First, I want to say that I'm not a doomsayer. This article is about approaching the inevitable and how to prepare. That's what I am doing right now: Preparing. :)
I own a legal document preparation business in Phoenix, Arizona. I've owned that business for about 13 years...and I hate it.
The whole reason I started the legal doc business was to be a funnel for divorce-related mortgage needs-- one spouse buying out the other, etc. I never really wanted to be in the divorce business.
My plan hasn't really worked out. And lately- I'm totally dead in the water. Couples can't afford to buy each other out. They both qualified with a 2.75% interest rate and now only one of them can be on the new loan. Not only that, but the rate is over double.
That's only the half of it: because here comes AI.
I see the writing on the wall and legal doc-prep is the first thing that's going to go. There is no way it will exist in 5 years. It shouldn't exist now. If you are an attorney who doesn't litigate, meaning you prepare documents, your time is coming too.
I almost want to make this post "private", but I'm going to say it:
You don't need a professional to prepare a deed or a purchase contract or any legal document.
I know what you are thinking: Michael, nobody is going to trust AI to draft actual legal documents. Please consider the following:
I was in college in 1998; I was 28 years old. Google had just come out and our professors were very excited about it. It was very academic. At least compared to the only other search engine I remember from that time, which was Yahoo.
Google came along and gave us something new. Something that was very useful and that actually found the information you were looking for. But again this was for nerds and college professors and students. Normal people were not using Google.
In 2002, "Google" became a verb and went into the dictionary. It only took about 4 years to go from an academic tool to a cultural phenomenon.
Prompt Engineering
I would not encourage anybody to log in to AI and just ask it to make a contract. In fact it will often do it completely wrong. But since they keep updating models every couple of months- it's going to become just like Google. Everybody will be using it.
If you know how to prompt, and you understand the topic, it will be flawless every time.
My plan was to show you how ChatGPT will create an improper Quit Claim deed if you give it a bad prompt. But ChatGPT shoved it right back in my face today. Here is the prompt:
"Create a quit claim deed for me, granting ownership of 321 Main St, Phoenix 85015 from Becky Smith to Ronald Smith."
On the ChatGPT from a couple of months ago (or is it weeks?)- it would have created the deed, improperly, with the limited information I provided.
Meaning, it corrected me and it's never done that before. And if you want to see the entire conversation (2 prompts to a perfect deed), I linked to my chat here.
Here is how ChatGPT responded. Ugh.
⚠️ Important items still needed before recording:
Full legal description (from prior deed, not just the street address)
Grantor and grantee marital status (often required in AZ)
Assessor’s Parcel Number (APN)
Return address for recording
Notarization
After notarizing, the deed is recorded with the Maricopa County Recorder's Office.
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