Can a paralegal who is also a licensed real estate broker handle a client's real estate closing if the file was prepared under an attorney's supervision?
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This page answers the general question as of 1980. Ezel answers yours: whether it's allowed on your facts, under the current rules of professional conduct in your state, with citations.
Plain-English summary
Opinion E-80-2 asked whether a paralegal who is a licensed real estate broker may appear at a real estate closing, in or away from the office, where the file was previously prepared under an attorney's supervision. The committee answered no, relying on DR 3-101(A): a lawyer may not aid a nonlawyer in the unauthorized practice of law.
The committee reasoned that, while many closings are held without either party being represented by counsel, a client who retains an attorney for a closing expects competent advice protecting the client's interests, and is entitled to have the legal effect of the documents explained by the attorney even if the documents were prepared under attorney supervision. A paralegal explaining those documents could be interpreted as the unauthorized practice of law by a layperson. If the paralegal from the attorney's office appears at the closing, it will seem the paralegal is there in a legal capacity, and no closing is perfunctory from the client's standpoint; it would be a rare closing where no legal questions arise. The committee noted it was not addressing the broker's own ethical questions or attorney-client confidentiality issues, but concluded that, because the broker could be placed in the position of either rendering unauthorized legal advice or withholding advice to the client's disadvantage, DR 3-101 applies and the paralegal may not handle the closing.
Currency note
This opinion was issued in 1980, before Wisconsin's July 1, 2007 adoption of the revised Rules of Professional Conduct for Attorneys (the state's Ethics 2000 update), and it applies the former Code provision cited in the opinion. The bar on aiding the unauthorized practice of law is now in SCR 20:5.5 / Model Rule 5.5, and a lawyer's responsibility for nonlawyer assistants in SCR 20:5.3 / Model Rule 5.3. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.
Common questions
Q: Can a paralegal run a real estate closing for the client?
A: No. The committee concluded a paralegal may not appear for the client at a closing, because explaining the legal effect of the documents would be the unauthorized practice of law that the lawyer may not aid.
Q: Does it help that the file was prepared under an attorney's supervision?
A: No. The committee said the client is still entitled to have the legal effect of the documents explained by the attorney, even where the documents were prepared under supervision.
Q: Does it matter that the paralegal is also a licensed real estate broker?
A: The committee said it was not addressing the broker's own ethical duties, but concluded that the broker could be forced to choose between rendering unauthorized legal advice or withholding advice to the client's disadvantage, so the rule applies.
Background and rules framework
The opinion interpreted the former Wisconsin rule barring a lawyer from aiding a nonlawyer's unauthorized practice of law (SCR 20.18(1), corresponding to DR 3-101(A)). The current counterparts are the unauthorized-practice rule (SCR 20:5.5 / Model Rule 5.5) and the rule on supervising nonlawyer assistants (SCR 20:5.3 / Model Rule 5.3).
Citations and references
Rules of Professional Conduct:
- Wis. SCR 20.18(1) / DR 3-101(A) (lawyer may not aid a nonlawyer's unauthorized practice) (former Code)
- Model Rules 5.5, 5.3 (unauthorized practice; nonlawyer assistants)
See also
- WI Ethics Op. E-80-9: Attorney as Employee-Shareholder of an Eviction Corporation
- WI Ethics Op. E-85-6: Listing Legal Assistants on Firm Letterhead
- WI Ethics Op. E-83-3: Announcing the Hiring of a Lay Person
Source
- Landing page: https://www.wisbar.org/formembers/ethics/pages/formal-opinions.aspx
- Original PDF: https://www.wisbar.org/formembers/ethics/Ethics%20Opinions/E-80-2.pdf
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