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In re Opinion No. 26 of the Committee on the Unauthorized Practice of Law

Supreme Court of New Jersey

654 A.2d 1344 (1993)

Relevant factsFree

Real estate brokers commonly prepare form sale contracts, arrange buyer financing, order title commitments, and arrange for a deed to be drafted by an attorney of the broker's choosing. In North Jersey, both buyers and sellers are typically represented by their own attorneys, but in South Jersey many transactions proceed entirely without either party retaining counsel, reducing costs but leaving the parties without independent legal advice about the contract's risks or any exceptions the title company takes. New Jersey attorneys argued these broker practices amounted to the unauthorized practice of law and should be barred.

IssueFree

Whether the public interest is advanced by prohibiting real estate brokers from preparing form contracts and facilitating real estate sales — activities that constitute the practice of law — as long as the parties give informed consent.

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