[WSBARP] Attorney Acting as Broker

[Craig Blackmon]

It can be done - I've been doing it in one way or another for about a
decade. Here is a quick-n-dirty list of the issues:

   1. Query whether everything you will do falls within the exemption to
   the licensing statute as an attorney. If you do anything that clearly isn't
   the practice of law and falls within "real estate brokerage services" then
   I suspect the DOL would say the exemption doesn't apply at least as to
   those activities. The DOL may be wrong, but you'd have to litigate the
   enforcement action to find out. The alternative is to get your license. But
   see No. 3.
   2. Even if the exemption applies, you almost certainly won't be entitled
   to the commission, unless you are a licensed real estate broker and member
   of the NWMLS. The former is a requirement typically of new construction,
   and only by the latter do you have a contractual right to that fee. Maybe
   the seller will agree to pay you the same funds, but that is a negotiated
   term, not automatic, unless you are in the NWMLS.
   3. By my analysis, one cannot act as a broker and as an attorney at the
   same time for the same client. The legal and ethical obligations are
   inconsistent. Easiest example: If someone from the DOL comes to your office
   and asks for your client files, as a broker you must provide them. As an
   attorney, the very fact of representation is confidential and there is no
   way you can provide an agent of the state with the client's file, not
   without a court order.
   4. Be aware of the laws around a rebate. Generally speaking, it must be
   disclosed on the settlement statement and if not you are likely running
   afoul of federal law. No "cash back" outside of escrow...

Good luck!

Craig


Craig Blackmon, Attorney at Law
Seattle Real Estate Lawyer <http://www.seattlepropertylawyer.com/>
92 Lenora St. (The Makers Space, a shared work environment)
Seattle WA 98121
Office/Cell: (206) 369-5949   Fax: (206) 770-7328
@LawyerBroker <https://twitter.com/LawyerBroker>
How to Buy Without an Agent
<http://www.seattlepropertylawyer.com/blog?category=Buy+without+an+Agent> | How
to Sell FSBO <http://www.seattlepropertylawyer.com/blog?category=Sell+FSBO>
 | RE Glossary
<http://www.seattlepropertylawyer.com/blog?category=Real+Estate+Glossary>
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On Mon, Sep 26, 2016 at 1:14 PM, Jared Hawkins <jared at hawklaw.biz> wrote:

> Distinguished colleagues: I’ve been approached by a client that would like
> me to serve as his agent in a real estate transaction so that I can qualify
> for the buyer’s broker’s commission and then rebate a portion of the
> commission back to him.  I have reviewed Chapter 18.85 Revised Code of
> Washington (regarding broker licensing) and see that attorneys are exempt
> from the broker licensing requirements.
>
>
>
> Does anyone have experience acting in this capacity?  Does anyone advise
> against doing this (or are there issues I’m missing)?  I don’t feel real
> comfortable with the idea so I am exploring the relevant issues before I
> decide what to do.
>
>
>
> Thanks for your help.
>
>
>
> Jared N. Hawkins, Attorney at Law
>
> jared at hawklaw.biz
> Hawkins Law, PLLC
> Phone 509-529-5175 / Fax 509-529-2564
> 2225 Isaacs, Suite A/ Walla Walla, WA 99362
>
> Visit our website at hawklaw.biz.
>
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