Can a lawyer representing buyers in real estate deals be paid through real estate broker fees?

Plain-English summary

A lawyer asked about representing buyers of real property in real estate transactions, where the lawyer proposed to receive payment for his services through broker fees. The committee reviewed the inquiry and, based upon the facts presented, could find no violation of the Rules of Professional Conduct in the proposed representation.

The committee declined to address one question: it could render no opinion on whether the lawyer needed to be independently licensed as a real estate broker, which is a question of law outside its jurisdiction.

Currency note

This opinion was issued in 1995, 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 Treat this page as historical context, not current guidance.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 1.5 corresponds to ABA Model Rule 1.5 (fees).

Common questions

Q: Can a lawyer be paid through real estate broker fees for representing buyers?

A: Based on the facts presented, the committee could find no violation of the Rules of Professional Conduct in the lawyer's proposed representation.

Q: Did the committee say whether the lawyer needs a real estate broker license?

A: No. The committee said it could render no opinion on whether the lawyer needed to be independently licensed as a real estate broker.

Background and rules framework

The opinion addressed RPC 1.5 (fees, corresponding to ABA Model Rule 1.5). The committee evaluated the proposed fee structure against the Rules of Professional Conduct on the facts presented and found no violation, while treating the broker-licensing question as a question of law it could not answer.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.5 (fees); Washington RPC 1.5

See also

• WA Ethics Op. 1630: Lawyer Also Working as an Insurance Broker
• WA Ethics Op. 1625: A "Right to Withdraw" Clause in a Fee Agreement

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=714

Original opinion text

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

Advisory Opinion: 1631
Year Issued: 1995
RPC(s): RPC 1.5
Subject: Real estate; lawyer to receive payment through broker fees

The Committee reviewed your inquiry regarding your representation of buyers of real property in real estate transactions. [The lawyer proposed receiving payment for his services through broker fees.] The Committee could render no opinion on whether you needed to be independently licensed as a real estate broker but, based upon the facts presented, could find no violation in the Rules of Professional Conduct in your proposed representation.