Can a lawyer pay a limited practice officer a percentage of the escrow fee for closing work?

Plain-English summary

The inquiry concerned payment to a limited practice officer (LPO). The committee was of the opinion that RPC 5.5 does not permit payment of a percentage of escrow fee charges to the LPO. It added that there were other ways to provide compensation to the LPO, such as a flat fee payment per transaction, separate billing by the LPO, or other available methods.

Currency note

This opinion was issued in 1996, before the Washington State Bar Association's adoption of the 2006 revisions to the 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 Treat this page as historical context, not current guidance.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. Washington's RPC 5.5 corresponds to ABA Model Rule 5.5 (unauthorized practice of law and assisting it); limited practice officers are a category of nonlawyer authorized for limited tasks under Washington's APR.

Common questions

Q: Can a lawyer give an LPO a cut of the escrow fee?

A: No. The committee was of the opinion that RPC 5.5 does not permit paying an LPO a percentage of escrow fee charges.

Q: How can the LPO be paid instead?

A: The committee said other methods are available, such as a flat fee per transaction or separate billing by the LPO.

Background and rules framework

The opinion applied RPC 5.5 (corresponding to ABA Model Rule 5.5, governing the unauthorized practice of law and a lawyer's assistance of it) to a lawyer's compensation arrangement with a limited practice officer. The committee drew the line at percentage-of-fee sharing while leaving fixed or independently billed compensation open.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 5.5 (unauthorized practice of law); Washington RPC 5.5

See also

• WA Ethics Op. 1605: Fee Sharing With a Nonlawyer
• WA Ethics Op. 1644: Profit-Sharing With Nonlawyer Staff

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=761

Original opinion text

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

Advisory Opinion: 1687
Year Issued: 1996
RPC(s): RPC 5.5
Subject: Division of fees with limited practice officer

The Committee reviewed your inquiry regarding payment to a limited practice officer. The Committee was of the opinion that RPC 5.5 does not permit payment of a percentage of escrow fee charges, but that there were other ways to provide compensation to the LPO such as a flat fee payment per transaction, or separate billing by the LPO, or other methods which may be available to you.