UPON THE REQUEST OF A MEMBER OF THE SOUTH CAROLINA BAR, THE ETHICS ADVISORY COMMITTEE HAS RENDERED THIS OPINION ON THE ETHICAL PROPRIETY OF THE INQUIRER’S CONTEMPLATED CONDUCT. THIS COMMITTEE HAS NO DISCIPLINARY AUTHORITY. LAWYER DISCIPLINE IS ADMINISTERED SOLELY BY THE SOUTH CAROLINA SUPREME COURT THROUGH ITS COMMISSION ON LAWYER CONDUCT.
Ethics Advisory Opinion 00-03
Banker asks attorney to provide a title opinion and legal description for a second mortgage loan or equity line to be closed by banker in his office. The attorney will not be present at closing. The bank usually pays the attorney's fee as part of a "no closing costs" loan.
Questions and Opinions:
Question 1.
Is this the unauthorized practice of law by the Bank?
Opinion 1.
The Committee declines to answer this question, as it is a question of law, and should be addressed to the South Carolina Supreme Court in accordance with that Court's 1992 opinion, In Re Unauthorized Practice of Law.
Question 2.
Is the attorney committing an unethical practice by cooperating or participating in the unauthorized practice of law?
Opinion 2.
Pursuant to Rule 5.5(b) concerning the unauthorized practice of law, it would be unethical for attorneys to assist a person who is not a lawyer in the performance of an activity which constitutes the unauthorized practice of law.
Question 3.
Does the Buyer's Service case pertain only to first mortgage closings?
Opinion 3.
The Committee declines to answer this question as it is a matter of law to be determined by the courts of the state of South Carolina.