Unauthorized Practice of Law: What is Prohibited in Real Estate Transactions?

Have you ever wondered if you or an associate ever crossed the line in practicing law in a real estate transaction?  After all, what is prohibited in real estate transactions for someone not holding a law degree?  Can you give advice on Loan Mods?  How about advice on Pre-foreclosures and Short Sales?

I came across a great article that you may find by clicking here: http://firstamerican.com/content.cfm?id=3394.  This article was written in 2005 by John C. Murray when the issue of charging "doc prep fees" on transcations, by someone other than an attorney, was challenged in court.  I found it to be interesting back then when I tracked this issue.

I'd be curious to know your thoughts as we continue to enter into periods of uncertainty where many people rely on our guidance.  We are asked weekly about issues pertaining to Loan Mods, Short Sales and Pre-Foreclosures.  Should many of these questions be addressed to an attorney?  Do you have your clients sign something stating that you are not providing legal advice?

Curious to know your thoughts . . .