[WSBARP] lawyers receiving commissions

Mon Jun 19 20:34:11 PDT 2017

TO ALL,

1.      SHARING COMMISSIONS. It is true that RCW 18.85.301 (Sharing commissions) provides that:
“(1) Except under subsection (4) of this section, it is unlawful for any licensed firm, broker, or managing broker to pay any part of the licensee's commission or other compensation to any person who performs real estate brokerage services and who is not a licensed firm, real estate broker, or managing broker in any state of the United States or its possessions or any foreign jurisdiction with a real estate regulatory program.
(2) Except under subsection (4) of this section, it is unlawful for any licensed real estate firm to pay any part of the firm's commission from brokerage services or other compensation to a real estate broker or managing broker not licensed to do business for the firm.
(3) Except under subsection (4) of this section, it is unlawful for licensed brokers or managing brokers to pay any part of their commission from brokerage services or other compensation to any person, whether licensed or not, except through the firm's designated broker.
(4) A commission may be shared with a manufactured housing retailer, licensed under chapter 46.70<http://app.leg.wa.gov/RCW/default.aspx?cite=46.70> RCW, on the sale of personal property manufactured housing sold in conjunction with the sale or lease of land.”

2.     LAWYER EXEMPTION. But, it is also true that RCW 18.85.151 (Exemptions from licensing) provides that:
“This chapter shall not apply to: . . . . ; (3) An attorney-at-law in the performance of the practice of law; . . . .”

3.     ADVISABLE??

a.     However, I question whether it is advisable for a lawyer, under the guise of “performance of the practice of law”, attempting to perform the duties and obligations of an experienced and licensed real estate broker “professional”, who has also continually obtained the mandatory annual “clock-hour” education required by the Department of Licensing.

b.     Also, does the lawyer’s malpractice insurance cover this kind of conduct?
PETE

[PICT0001 (2)]

Law Office of James C. Middlebrooks
Pete Middlebrooks (Attorney)
3050 Belmonte Lane, Everett, WA 98201
Email: Pete at jcmiddlebrooks.com<mailto:Pete at jcmiddlebrooks.com>
Pete Tel.: 425-252-2693
www.Middlebrooksrealestatelaw.com

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Douglas W. Scott
Sent: Monday, June 19, 2017 6:12 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] lawyers receiving commissions

It has been over 20 years but as of then an attorney could get a commission for the sale of real estate    .

Sent from my iPhone

On Jun 19, 2017, at 11:47 AM, Roger Hawkes <Roger at law-hawks.com<mailto:Roger at law-hawks.com>> wrote:
To your knowledge are there any judicial rulings or WACS establishing a lawyer’s right to get a selling broker’s commission without a real estate broker’s license?  A managing broker is quoting this statute as the reason why escrow can’t pay a ‘procuring cause’ lawyer the ‘selling broker’s’ commission as listed on the purchase and sale agreement.

RCW 18.85.301
Sharing commissions.
(1) Except under subsection (4) of this section, it is unlawful for any licensed firm, broker, or managing broker to pay any part of the licensee's commission or other compensation to any person who performs real estate brokerage services and who is not a licensed firm, real estate broker, or managing broker in any state of the United States or its possessions or any foreign jurisdiction with a real estate regulatory program.
(2) Except under subsection (4) of this section, it is unlawful for any licensed real estate firm to pay any part of the firm's commission from brokerage services or other compensation to a real estate broker or managing broker not licensed to do business for the firm.
(3) Except under subsection (4) of this section, it is unlawful for licensed brokers or managing brokers to pay any part of their commission from brokerage services or other compensation to any person, whether licensed or not, except through the firm's designated broker.
(4) A commission may be shared with a manufactured housing retailer, licensed under chapter 46.70<http://app.leg.wa.gov/RCW/default.aspx?cite=46.70> RCW, on the sale of personal property manufactured housing sold in conjunction with the sale or lease of land.

Roger Hawkes, WSBA 5173
19909 Ballinger Way NE
Shoreline, WA 98155
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
206 367 5000 voice
206 367 4005  fax

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