My wife just became a licensed real estate agent, and I expect probate clients to need to sell real estate. Can I refer them to her?

Plain-English summary

An attorney whose wife had recently become a licensed real estate agent asked the panel whether a conflict of interest would arise if he referred clients to her, anticipating that situations would arise, particularly in probate matters, where a client might wish to dispose of real estate.

The panel recalled that in Opinion 88-33 it had held an attorney could properly purchase bonds for clients through a relative's insurance agency, provided the clients were not placed at any disadvantage. Taking a position consistent with that opinion, the panel held the attorney may refer clients to his wife provided the clients are not thereby disadvantaged in any way. It stated that a marital relationship between an attorney and a real estate broker does not, in itself, make it improper for the attorney to refer matters to the broker, though there may be circumstances under which a conflict of interest arises, which could warrant the attorney reapplying to the panel for a further opinion.

Currency note

This opinion was issued in January 1990, after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process. 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 Treat this page as historical context, not current guidance.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 mentioned here.

Common questions

Q: Can I refer clients to my spouse's business?

A: Yes, according to this opinion, provided the clients are not thereby disadvantaged in any way. The panel held a marital relationship between the attorney and a real estate broker does not by itself make referrals improper.

Q: Does this apply beyond real estate referrals?

A: The opinion applies its reasoning from Opinion 88-33, which concerned referring clients to a relative's insurance agency for surety bonds, to a spouse's real estate brokerage, suggesting the same disadvantage-to-the-client standard governs referrals to a relative's business generally.

Q: What should I do if a specific referral situation seems like it could create a conflict?

A: The opinion notes that particular circumstances may give rise to a conflict of interest and suggests the attorney reapply to the panel for a further opinion in that case.

Background and rules framework

The opinion does not cite a specific numbered Rule of Professional Conduct; it applies the panel's own precedent in Opinion 88-33, addressing referrals to a relative's business under the general conflict-of-interest framework of the Rhode Island Rules of Professional Conduct as adopted effective November 15, 1988, to an attorney's referral of clients to his spouse's real estate brokerage.

Citations and references

Rules of Professional Conduct:

• None cited by number; the opinion applies the conflict-of-interest standard from RI EAP Opinion 88-33.

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• RI EAP Opinion 88-33: held that an attorney could properly purchase surety bonds for clients through a relative's insurance agency, provided clients were not disadvantaged.

See also

• RI EAP Opinion 88-33: Purchasing Corporate Surety Bonds for Clients Through a Relative's Insurance Agency
• RI EAP Opinion 89-05: Giving a Former Client an Under-$100 Gift for a Successful Unsolicited Referral

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2090-01.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

DIGEST OF ETHICS ADVISORY PANEL
OPINION #90-1, REQUEST #71
Issued January 18, 1990

An attorney seeks Panel advice as to whether a conflict of interest would arise in the circumstances he describes. The attorney advises the Panel that his wife has recently become a licensed real estate agent. He states that he expects situations to arise in the future, particularly in the area of probate, in which one of his clients may wish to dispose of real estate. The attorney asks the Panel whether he can refer his clients to his wife.

In advisory opinion 88-33, we took the position that an attorney could properly purchase bonds for his clients through a relative of his, providing that his clients were not placed at any disadvantage. The Panel takes a position consistent with this opinion and holds that the attorney may refer clients to his wife providing the clients are not thereby disadvantaged in any way. A marital relationship between an attorney and a real estate broker does not, in itself, make it improper for the attorney to refer matters to the real estate broker. There may be circumstances under which a conflict of interest arises, however. Such circumstances may warrant the attorney reapplying to the Panel for a further opinion.

Ethics Advisory Panel advice is protective in nature. There is no requirement that an attorney abide by a Panel opinion, but if he or she does, he or she is fully protected from any charge of impropriety.