What ethics rules apply to a lawyer who represents both buyers and sellers, also works as a real estate broker, and sometimes becomes a partner with the purchaser?

Plain-English summary

The lawyer regularly represented both buyers and sellers in real estate transactions, also performed the functions of a real estate broker, and on occasion joined with the purchaser in those transactions as a partner. The committee reviewed the materials submitted with the inquiry, including the lawyer's fee agreement and client communications.

The committee was of the opinion that the fee agreement was inadequate under RPC 1.5(b) because it did not communicate the basis or rate of the fee. It also concluded that the lawyer's communications to clients did not provide the disclosures RPC 1.7 requires regarding the conflicts of interest between clients, or the disclosures RPC 1.8 requires regarding business transactions with clients.

Currency note

This opinion was issued in 1986, before the 2006 revisions to the Washington Rules of Professional Conduct. 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 Treat this page as historical context, not current guidance.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 lawyer represent both the buyer and the seller in a real estate deal?

A: The committee did not flatly forbid it, but concluded the lawyer's communications failed to give the conflict-of-interest disclosures RPC 1.7 requires between clients.

Q: What was wrong with the lawyer's fee agreement?

A: It was inadequate under RPC 1.5(b) because it did not communicate the basis or rate of the fee.

Q: What did acting as broker and partnering with the purchaser trigger?

A: The committee said those business dealings required the disclosures RPC 1.8 mandates for business transactions with clients, which the lawyer's communications did not provide.

Background and rules framework

The opinion applied three Washington rules. RPC 1.5(b) (ABA Model Rule 1.5(b)) requires communicating the basis or rate of the fee. RPC 1.7 (Model Rule 1.7) governs concurrent conflicts of interest, here between a buyer client and a seller client in the same deal. RPC 1.8 (Model Rule 1.8) governs business transactions between a lawyer and client, here the lawyer's broker role and partnering with the purchaser.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.5(b) (communicating the basis or rate of the fee)
• ABA Model Rule 1.7 (conflict of interest: current clients)
• ABA Model Rule 1.8 (current clients: specific rules; business transactions)
• Washington RPC 1.5(b), 1.7, and 1.8

See also

• NY State Bar Op. 1117: Lawyer-Broker in One Deal
• CA Op. 1999-154: Lawyer Dual-Practice and Referral Fees

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=128

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

The Committee understood from your inquiry that you regularly represent both buyers and sellers in real estate transactions, and that in addition you also perform the functions of a real estate broker and on occasion may join with the purchaser in these transactions as a partner. In reviewing the materials submitted with your inquiry, the Committee was of the opinion that your fee agreement submitted to your client is inadequate in that it does not communicate the basis or rate of the fee as required by RPC 1.5(b). In addition, the Committee was of the opinion that your communications to your clients do not provide the disclosures required by RPC 1.7 regarding the conflicts of interest between clients and RPC 1.8 concerning business transactions with clients.