May a Connecticut law firm represent a client in a real-estate deal when one firm lawyer serves as the client's or opposing party's real-estate agent?
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This page answers the general question as of 2018. Ask about yours and see what the current Connecticut Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
The inquiring associate worked for a three-lawyer firm and separately acted as a licensed real-estate salesperson. Other lawyers in the firm represented clients from the associate's real-estate work. The Committee applies Rule 1.10(a) and concludes that the associate's conflicts are imputed to the entire firm, regardless of the associate's fixed compensation or lack of ownership in the brokerage.
The opinion carries forward Informal Opinion 15-03. A lawyer serving as both lawyer and real-estate agent in a transaction must comply with Rule 1.8(a)'s written fairness, independent-counsel, consent, and role disclosures. A buyer's lawyer who is also a subagent owing duties to the seller has a nonwaivable conflict. Because that conflict is imputed, the firm cannot represent the buyer while the associate acts as the seller's real-estate agent.
The firm may offer free or discounted legal services when the fee remains reasonable and advertising limits are satisfied. The Committee flags that an exclusive discount for clients of one brokerage may be a thing of value that gives the brokerage a significant marketing advantage for recommending the firm's services under Rule 7.2(c). The associate also may not solicit legal work in person, by telephone, or through real-time electronic persuasion while acting as a real-estate salesperson.
In practice
Under this opinion, assigning a real-estate client to another lawyer in the firm does not remove the lawyer-agent's conflict or disclosure duties. The Rules continue to govern the associate during real-estate work, including limits on referrals, advertising, and live solicitation.
Common questions
Q: Can another firm lawyer represent the real-estate client without the lawyer-agent's disclosures?
A: No. Rule 1.10(a) imputes the lawyer-agent's conflict to the firm, so the same required disclosures apply to the other firm lawyers.
Q: May the firm represent a buyer when its associate is the seller's real-estate agent?
A: No. The opinion concludes that the associate's duties to the seller create a conflict imputed to the firm.
Q: Does fixed compensation keep the conflict from being imputed?
A: No. The opinion applies imputation even though the associate's compensation did not depend on firm profitability and the associate owned no interest in the brokerage.
Q: May the firm discount fees for the associate's real-estate clients?
A: Yes, if the fee is reasonable and the advertising rules are satisfied. The opinion separately flags Rule 7.2(c) when an exclusive brokerage discount may provide value for recommendations.
Q: May the associate solicit legal work while acting as a real-estate agent?
A: Not through in-person, telephone, or real-time electronic persuasion. The opinion states that Rule 7.3(a) applies to lawyers at all times.
Background and rules framework
Rules 1.7 and 1.8 govern the lawyer-agent's personal-interest and business-transaction conflicts. Rule 1.10(a) imputes the conflict to the firm. Rules 1.5(a), 7.2(c), and 7.3(a) govern reasonable discounted fees, value given for recommendations, and live solicitation.
Citations and references
Connecticut Rules of Professional Conduct:
- Rules 1.8(a)(1)-(4), 1.7(a)(2), 1.7(b)(1), 1.7(b)(3), 1.10(a), 1.5(a), 7.2(c), and 7.3(a)
Statutes:
- Conn. Gen. Stat. § 20-325(d) and (f), real-estate agency disclosure
- Conn. Gen. Stat. § 20-320a, paid referrals by real-estate salespersons or brokers
Other opinions cited:
- Connecticut Informal Opinion 15-03, lawyer serving as lawyer and real-estate agent in one transaction
- Connecticut Informal Opinion 94-23, reasonable fees need not be calculated identically for every client
See also
- NY State Bar Op. 919: Lawyer's dual real-estate practice
- NY State Bar Op. 807: Imputation in buyer-seller representation
- OSB Ethics Op. 2005-94: Lawyer's spouse as real-estate broker
Source
- Landing page: Connecticut Bar Association Informal Ethics Opinions
- Original PDF: Informal Opinion 18-03
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