Nonlawyer Assisting the Short Sale Seller: Ministerial Acts or UPL?

As you know, short sale negotiations (and negotiators) are coming under great scrutiny by local and federal authorities. There are significant new disclosures for non-attorneys, and now the Florida Bar is weighing in on the subject.

In essence, various proposals under consideration by the Florida Bar suggest that a great deal of the short sale negotiation process is considered the practice of law. As such, we strongly recommend that seller’s of short sale property carefully consider whether or not it is in their best interests to engage a non-attorney short sale negotiation team.

The attached article provides an excellent summary of what a non-lawyer can and cannot do in connection with short sale negotiations. In essence, the article suggests that a non-attorney short sale “negotiator” cannot even negotiate a short sale, but is instead relegated to simple paper pushing (or they run the risk of engaging in the unlicensed practice of law (UPL)). Click here for the article.

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