This is a tough area of ethics. As a California lawyer and a Licensed Real Estate broker and a Florida Lawyer, I face more regulations than most.

Fact one – Realtors are practicing law when then start counseling home sellers on pre-foreclosure options, reviewing client’s financials, explaining liablity for deficiency or even representing the homeowners with the lenders. And, most importantly reviewing documents for the closing.

Fact – there is actually a great deal of lawyering in buying and Selling Real Estate. But no one seems to get too upset in a rising market if a Realtor practices law. I suspect it is different now.

So, am I to be paid as a Realtor or as a lawyer. In this hybrid area I think the important thing for the client to know is this:

If it is in the client’ interest to do a short sale I will say so. However, many times a deed in lieu or perhaps even a foreclosure could be a better overall result. The last thing I will do is advocate for a short sale which leaves the client liable for a deficiency.

I may spend a significant amount of time on these pre-foreclosure matters without negotiating a complete short sale for the client. There may be no buyers, there may be no way to strike a reasonable agreement with the bank. As I said, I will not counsel the client to take a short sale which will leave him or her in worse financial shape.

I will provide the services per our legal retainer agreement or per our engagement agreement. If it is in the client’s (your) interest to sell the property via short sale, I will be happy to be paid as a Realtor on the short sale and return some of the client’s (your) legal fees. (As long as I make more as a Realtor than as a lawyer.)

If you have not engaged UpsidedownRealestate.com or John McConnin to soley provide Realtor services then you have agreed to pay a fee for Legal Services only.

thank you

John McConnin
Quintana McConnin & Sarte LLP
UpsideDownRealEstate.com