Attorney and a Real Estate Broker?

I often have clients ask me if I can act as their attorney and their real estate broker in the same transaction. The short answer is no.

The Real Estate License Act of 2000 does not have any specific guidance in regards to this situation. However, on January 9, 2014, the Illinois Department of Financial and Professional Regulation (the “IDFPR”), filed a complaint against an attorney and real estate broker for violating the Real Estate License Act of 2000 during the February 2013 sale of a property in Chicago.

He was fined $9500 and his real estate license was suspended indefinitely. After a number of motions and hearings, it went all the way to the Illinois Second District Appellate Court, which upheld the IDFPR’s ability to sanction lawyers and brokers who provide legal services and act as real estate brokers in the same transaction. The person’s license was not suspended indefinitely, but it is a cautionary tale to those of us who are lawyers and real estate brokers.

Even with all of this being said, in instances where I have acted as a real estate broker for clients, I have always had my clients obtain separate counsel and consult them for legal advice for their real estate transaction.

I do not think it benefits the client to have one individual acting in two roles in any way whatsoever, as the old saying goes, two sets of eyes is better than one.