LIMITED REPRESENTATION

There are rules that govern how lawyers limit the scope of their representation in a real estate transaction. Rule 1.2(c) of the Rules of Professional Conduct allows lawyers to limit their representation if the client consents after disclosure. The lawyer should clearly define the scope of representation, explain it to the clients in person, and obtain proof of the clients' consent, preferably in writing.

An example of the problems inherent in limiting the scope of your representation is ISBA Opinion 94-1, where the ISBA opined that a lawyer violated the Rules of Professional Conduct when he limited his representation in a real estate transaction to preparation of the deed and Real Estate Transfer Declaration. In that case, the lawyer prepared the deed and Real Estate Transfer Declaration but did not attend the closing, answer the sellers' or the buyers' attorneys' questions, or counsel the sellers in any way. These acts confused the other parties to the transaction, jeopardized the closing, and cost the sellers money. The sellers' real estate broker tried to provide the missing guidance. Opinion 94-1 considered the lawyer's actions to be an inappropriate limitation of the scope of representation. In addition, the ISBA found that the lawyer aided in the unauthorized practice of law.

In light of this and other similar opinions, lawyers should also consider to what extent they must explore all related areas of the law with clients on their transactions. When limiting your representation, be sure to consider the issues raised here, then do so with caution and in writing.

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