Many companies are already using AI without fully realizing it. It is embedded in software platforms, marketing tools, HR systems, analytics programs, and customer-facing applications. Even when a business does not build the AI itself, it remains responsible for how that AI operates, what data it uses, and what outputs it produces. If an AI system makes a mistake, discloses confidential data, or produces misleading or discriminatory results, the legal and financial consequences fall on the company.

AI & Data Privacy Are Now Inseparable

Modern AI systems rely on large volumes of data, much of which is personal, financial, or proprietary. That means existing privacy and data-protection laws already apply to AI, even where no AI-specific statute exists. Consent, notice, purpose limitation, data minimization, and security obligations all matter just as much when data is processed by an algorithm as when it is processed by a human.

Regulators increasingly view AI as an extension of data processing, not a separate category. When personal data is fed into an AI system, whether for training, analysis, decision-making, or otherwise, privacy obligations follow it. Companies that do not understand how data moves into and through their AI tools are exposed to compliance risk, whether they realize it or not.

AI Governance Is Becoming a Business Expectation

Across industries, regulators and counterparties are beginning to expect companies to know when and how AI is used in their operations. That includes having internal policies, employee guidance, vendor controls, and documentation that demonstrate responsible use.

This is not just about compliance. It is also about risk management. Without clear rules, employees may upload confidential information into public AI tools, rely on unverified outputs for business decisions, or use AI in ways that conflict with company values or legal obligations. Governance provides guardrails so innovation does not quietly turn into liability.

AI Raises Intellectual Property & Contract Issues

AI systems can generate reports, marketing materials, designs, code, and other business content, but ownership of that generated content is not always straightforward. Some platforms impose limits on how their outputs can be used. Others rely on training data that may include copyrighted or proprietary material, which can create infringement risk.

Businesses that rely heavily on AI-generated content need to understand what rights they actually have, what their vendors are promising, and where potential risk exposure exists. These issues belong in contracts, licensing terms, and internal usage policies, not just in the IT department.

Errors, Hallucinations, & Accountability

AI systems are powerful, but they are not reliable in the way traditional software is. They can generate incorrect or fabricated information that appears convincing. If those outputs are used in customer communications, advertising, financial reporting, or operational decisions, the company bears the risk. There is no legal concept of “the AI made me do it.” The business remains responsible for what it publishes, relies on, or communicates, even when it was created by an AI tool.

Using AI Responsibly Is Now Part of Running a Business

AI is here to stay. The companies that succeed with AI are not the ones avoiding it, they are the ones using it deliberately, with clear rules, strong data protections, and realistic expectations about what it can and cannot do. The challenge for businesses is learning how to use it in a way that supports growth while protecting the organization from legal, regulatory, and reputational harm. Balancing innovation with accountability in a rapidly evolving environment is key to success in the world of AI.

How We Can Help

If you have questions about how artificial intelligence is being used in your business, whether your current practices create risk, or how to put appropriate policies and contracts in place, now is the time to address them. AI is moving faster than the law, but regulators are paying close attention, and the law may soon be able to catch up. Working with counsel to evaluate and structure your AI use can help you stay ahead of problems rather than reacting to them after they arise.

For more information or to seek counsel from our Business & Corporate practice group, please reach out to request a consultation or call us at 216-696-1422.

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This information is provided for general informational purposes only and should not be construed as legal advice. Readers should consult with qualified legal counsel regarding their specific circumstances before taking any action based on the information presented.

The post Businesses & Artificial Intelligence: Avoiding Hidden Risks appeared first on McCarthy Lebit - A Cleveland/Ohio Law Firm.

The undertaking of a new stadium isn’t the only project headed towards Cleveland’s west side. In June, the City of Cleveland announced a $1.4 billion overhaul of Cleveland Hopkins International Airport, with construction beginning within the next year and major phases set to be completed in the early 2030s.

These two projects, being within a few hundred yards of each other, represent a generational shift in how people, businesses, and capital will move across Northeast Ohio. For middle-market businesses, particularly those in construction, logistics, and real estate and facility services, a window of opportunity is opening now. Here’s how your business can prepare.

The Game is Changing, But Is Your Business Ready?

Brook Park currently sits at a strategic logistics junction, with I-71, I-480, and the airport providing connectivity for regional and interstate areas. With the new domed stadium and airport renovations slated for over $3.8 billion in combined investment, Brook Park and the surrounding west side of Cleveland are primed to become a new industrial and service corridor, creating a surge of opportunities for manufacturers and suppliers.

With construction at the forefront of both projects, it will drive demand for foundational materials such as concrete, steel, fabricated components, and more. Simultaneously, opportunities for HVAC providers, aviation construction specialists, and contractors with large-scale public infrastructure experience will be in high demand. Evaluating your company’s service or product alignment could open multi-year revenue streams with strategic partnerships.

New Space, New Possibilities

As the Browns prepare to relocate to Brook Park, the City of Cleveland has secured a $100 million settlement with the Haslam Sports Group to resolve outstanding lease and redevelopment issues tied to the team’s lakefront property. Under the settlement, $25 million is due by December 1, 2025, with additional payments thereafter dedicated to the demolition, site preparation, and community benefit investments over the coming years. The settlement reserves $30 million to demolish Huntington Bank Field and prepare the lakefront site for redevelopment as a mixed-used extension of Downtown Cleveland.

For companies looking to expand beyond the west side of Cleveland, and with the Browns slated to leave their downtown location, opportunities for expansion in downtown and the City’s lakefront are beginning to emerge. This summer, The City of Cleveland started seeking proposals from developers for up to 50 acres of public property, including the land currently owned by the Cleveland Browns, to reimagine the site through long-term ground leases and public-private partnerships. Mayor Bibb has stated that his request for proposals includes invitations for developers to come up with a different purpose for the lakefront stadium beyond a sports venue. This presents a blank slate opportunity for residential, commercial, cultural, and civic uses that can complement the evolving downtown area and waterfront.

How Businesses Can Position Themselves Now

For business clients and middle-market firms looking to participate in this transformation, the key is to engage early. Now is the time to identify and respond to initial requests for proposals and qualifications for the upcoming lakefront redevelopment. Businesses specializing in utilities, environmental remediation, landscaping, lighting, signage, public improvements, and more can provide critical value as the demolition of Huntington Bank Field transitions into infrastructure development. Success will also depend on strategic collaboration between developers, designers, civic organizations, and local stakeholders, which can help ensure proposals reflect the City’s priorities in their selection and evaluation process.

Preparing now is essential. Firms should begin building internal capacity, developing concept proposals and market briefs, and modeling potential partnership structures so your firm can quickly respond when public solicitations are released. Staying in tune with timelines, zoning updates, and funding windows will give businesses a crucial timing advantage once projects move from planning to execution.

A Strategic Realignment

Two of the region’s most prominent public projects, the Browns stadium and the Hopkins airport renovation, are converging on Cleveland’s western corridor. Although there are differing opinions on whether this is a civic upgrade or a step in the wrong direction for Cleveland, for middle-market businesses, it opens up multiple opportunities to reposition for growth.

Businesses exploring expansion opportunities, procurement strategies, long-term leasing planning, or redevelopment can benefit from partnering with an experienced real estate attorney for assistance with thoughtful planning and guidance in evaluating options. Ensure your business is aligned with where Northeast Ohio is headed, not just where it’s been.

For more information on business or real estate opportunities, or to seek counsel from our Real Estate & Construction practice group, please reach out to request a consultation or call us at 216-696-1422.

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The Importance of Title & Survey Review

A review of a title commitment confirms the seller owns the property and has the legal right to sell it. Without this confirmation, buyers can inherit undisclosed liens, outdated mortgages, restrictive covenants, easements, or unresolved ownership claims. Any of these issues can delay closing, reduce the value of the property, and create legal disputes.

Survey review is equally as important as title review, and the two go hand-in-hand. A survey reveals the property’s physical boundaries and identifies easements, encroachments, setbacks, and other conditions that impact land use. These issues may be detailed on the title commitment but are often misunderstood until they are revealed by a current survey of the property.

Title insurance also plays a major role. A clean title is usually a prerequisite for a title insurance policy, which protects against future claims or undiscovered issues. Further, most commercial lenders will not fund a transaction without it.

A Real Estate Lawyer’s Role in the Title & Survey Review Process

Real estate lawyers serve as both legal translators and risk managers in the title and survey review process. On the title side, they examine the title commitment issued by the title company, flag concerning exceptions, and negotiate their removal or mitigation. Lawyers will also ensure that the property title complies with the representations and warranties in the purchase agreement.

When it comes to the survey, it is cross-referenced with the title documents to identify any conflicts, encroachments, or unrecorded easements. The analysis focuses on how the property’s physical and legal boundaries could affect intended use, such as future expansion plans, parking layout, compliance with local zoning regulations, or more.

Beyond identifying issues, the goal of a real estate attorney is to help mitigate risk. This may involve recommending specific endorsements to the title policy, drafting or revising agreements, or coordinating with the title company, engineers, and lenders to resolve issues before closing. It is also essential to ensure the proper issuance and recording of deeds and other legal documents.

Small Business, Big Stakes

Small business owners often invest their personal savings and take significant risks when acquiring property. That is specifically why due diligence in commercial real estate transactions is not just for major corporations. It is even more crucial when the stakes are personal, margins are tighter, and an owner stands to lose everything. This makes careful legal diligence not a luxury for small businesses, but a necessity.

If you are buying, leasing, or developing property, a real estate attorney can help you uncover hidden risks, negotiate protections, and close with clarity and peace of mind.

To seek counsel from our Real Estate & Construction group, please reach out to request a consultation or call us at 216-696-1422

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In celebration of National Small Business Month, we proudly recognize the contributions of small businesses in our community. McCarthy Lebit is committed to supporting entrepreneurs and business owners with trusted legal guidance through every stage of their journey, from formation to growth and beyond. As a law firm deeply connected to the small business community, we’re proud to serve as trusted advisors and advocates for business owners throughout the region.

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Given the real estate market’s strong performance in recent years, especially in desirable neighborhoods, many property owners may face higher valuations. In turn, these increases are likely to result in higher property tax obligations.

What Impacts Property Values?

The reappraisal incorporates multiple data points:

• Market Trends: Properties in areas with significant development or strong demand may see considerable value increases.
• Recent Sales Data: Comparable property sales in your neighborhood play a critical role in determining value.
• Physical Characteristics: Renovations, repairs, or neglected maintenance may all affect valuation.

The Tax Implications of Higher Assessments

While rising property values can indicate a strong market, they can also directly influence tax bills. Property taxes are calculated by multiplying a property’s assessed value (35% of the appraised value in Ohio) by the local tax rate (millage rate). Thus, even a modest value increase can lead to noticeable tax hikes.

However, property owners should remember that millage rates are determined by local levies and government budgets. Higher appraised values do not automatically result in proportional tax increases unless levies change as well.

How to Challenge Your Property Assessment

If you believe your property has been overvalued, you have the right to appeal the valuation. Appeals must be filed with the Cuyahoga County Board of Revision (BOR) between January 1 and March 31, 2025. Steps include:

1. Review Your Valuation: Compare your appraised value with comparable property sales in your area.
2. Gather Evidence: Such as comparable property sales in 2023 and 2024, recent appraisals or broker price opinions, and documentation of defects or deferred maintenance, including dated photos or contractor estimates. Any appraiser must testify in support of their opinion of value.
3. File Your Complaint: Submit the required forms through the BOR portal or in person.
4. Attend Your Hearing: Present your evidence before the BOR, which will decide whether to adjust the valuation.
   1. Your local school board may submit its own evidence of value to challenge your proposed value.
5. File An Appeal: If necessary, you may file an appeal with the Ohio Board of Tax Appeals or the Cuyahoga County Court of Common Pleas within 30 days of the written release of the BOR’s decision.

A well-prepared appeal supported by expert guidance often yields better outcomes, especially when challenging complex or large-scale discrepancies.

Why Early Action Matters

The 2024 reappraisal will establish tax liabilities through 2030, meaning errors in this cycle can have long-lasting financial effects. Property owners are encouraged to:

• Audit their valuations for accuracy.
• Monitor neighborhood trends that could affect market value.
• Consult legal counsel or property tax specialists for preemptive strategies.

Legal Assistance for Property Reappraisal Issues

Navigating the intricacies of property valuation and tax appeals requires a keen understanding of the process and evidence standards. Our firm has extensive experience representing property owners in valuation disputes, from analyzing market data to advocating before the BOR.

If you are concerned about your 2024 reappraisal or its impact on your property taxes, please reach out to request a consultation or call us at 216-696-1422.

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McCarthy Lebit would like to thank Alex Friedman for his effort in assisting with the preparation of this legal blog post for The More Report. At the time of publication, Alex was a JD graduate from the University of Miami and was awaiting results from the Ohio Bar Exam. He is now a licensed Ohio attorney and a member of the firm’s transactional practice groups.

The post Understanding the 2024 Property Reappraisal in Cuyahoga County: Key Details for Property Owners appeared first on McCarthy Lebit - A Cleveland/Ohio Law Firm.

As these rules are implemented, they are expected to profoundly impact how homes are bought and sold, creating new challenges and opportunities for homebuyers, sellers, and the real estate professionals who serve them.

The Traditional System: How it Used to Work

In the traditional real estate model, when a homeowner decided to sell their property, they typically engaged with a seller’s agent, who would charge commission—around 5% to 6% of the home’s sale price. This commission was then typically split between the seller’s agent and the buyer’s agent, meaning the buyer received representation without having to pay for it directly. While this system was widely accepted, it was not without its critics. Many argued that the practices of sellers paying both agents’ commissions inflated home prices, as sellers often factored these costs into their listing prices.

Moreover, the standard practice of including commission details on multiple listing services meant that there was little room for negotiation on these fees. Homebuyers and sellers were often unaware that these commissions were negotiable, leading to a lack of transparency in the process.

New NAR Rules: What’s Changing?

One of the most significant changes is that buyers may now be responsible for paying their agent’s fees. From now on, buyers will no longer benefit from representation without paying for it directly, as buyers will need to sign agreements with their agents before touring properties. These agreements clearly outline the buyer’s responsibility to pay their agent if the seller chooses not to cover the cost. This shift could have significant implications for the real estate market, as it may deter some buyers from seeking representation or lead to increased negotiation over who pays the agent’s fees.

Another major change is that multiple listing services will no longer include agent compensation details. These services have long been a cornerstone of the real estate industry, providing realtors with a centralized database of property listings to share information about homes for sale, including details about agent compensation. By removing this information, the National Association of Realtors aims to increase competition and encourage more negotiation between buyers, sellers, and their agents.

Further, the rule changes could pave the way for the growth of alternative business models, such as flat-fee or discount brokerages. These models, which offer services for a lower fixed rate or a reduced commission, may become more attractive to both buyers and sellers looking to minimize costs in an increasingly complex real estate market. Some companies are even exploring innovative approaches, such as where agents bid for home listings, allowing sellers to choose the best offer based on both service and cost.

Overall, the introduction of these new rules is expected to lead to a reduction in overall real estate commissions, with some analysts predicting that they could fall by as much as 25% to 50%.

How We Can Help Navigate These Changes

As the real estate industry adjusts to these new rules, the role of legal counsel will become more crucial. Lawyers can provide invaluable support to both buyers and sellers as they navigate the complexities introduced by these changes.

With buyers required to enter into written agreements with their agents before touring properties, the importance of thorough contract review cannot be overstated. These agreements may include unfamiliar terms or impose new obligations on buyers, such as the need to pay their agent’s fees out of pocket if the seller refuses.

The introduction of new rules often leads to confusion and uncertainty, especially in a highly regulated industry like real estate. Lawyers can assist in drafting clear, enforceable agreements and negotiate on behalf of their clients to secure more favorable terms or to clarify ambiguous language that could lead to disputes down the road to help their clients stay compliant with the new regulations, reducing the risk of legal disputes or financial penalties. A lawyer can help ensure these contracts are fair, transparent, and tailored to protect the client’s interests.

As alternative business models gain traction in response to the new rules, clients may encounter a variety of different pricing structures and offerings. Legal counsel can help clients understand the implications of these new models, ensuring that they can make informed decisions about which type of service is right for them.

As the real estate industry adapts to these changes, it is likely that some transactions will result in disputes, particularly as buyers and sellers adjust to new expectations around agent compensation. Lawyers can represent their clients in these disputes, whether through negotiation, mediation, or litigation, helping to resolve conflicts in a way that protects clients’ interests and minimizes disruption to the transaction.

Our team of attorneys can assist potential buyers or sellers in a real estate transaction by evaluating the impact of the new National Association of Realtors rules and any challenges they may face following their implementation. For more information from our Real Estate & Construction attorneys, please reach out to request a consultation or call us at 216-696-1422.

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McCarthy Lebit would like to thank Alex Friedman for his effort in assisting with the preparation of this legal blog post for The More Report. At the time of publication, Alex was a JD graduate from the University of Miami and was awaiting results from the Ohio Bar Exam. He is now a licensed Ohio attorney and a member of the firm’s transactional practice groups.

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