ETHICS OPINION 455-1957 ATTORNEYS

NUMBER 455

QUESTION.

 

I understand it is customary for real estate brokers to split commissions and that this practice is often invoked when one broker has the exclusive agency.

 

1. Is it a violation of the canons of legal ethics for an attorney (who is not a licensed broker but who may act as a broker) to split the commission with the broker who is not an attorney?

 

2. May an attorney who is entitled to a brokerage commission properly represent the seller at the closing of title to the property?

 

3. Would the answer be the same if the attorney had a one-third interest in the proceeds of sale of the property?

 

ANSWER.

 

It is not a violation of the Canons of Legal Ethics for an attorney to split a commission with a broker who is not an attorney, provided the attorney was instrumental in negotiating the transaction, and provided the attorney is not the attorney for either the, buyer or the seller in the same transaction.

 

But a violation would occur if the attorney splitting the commission were to represent either the buyer or seller in the same transaction even though a full disclosure of the attorney’s interest in the commission had been previously made to the client.

 

The fact that the attorney has a partial proprietary interest in the real estate would not change his ethical responsibility as hereinabove stated.