Wednesday, October 25, 2006

SC Supreme Court holds that disbursement of loan proceeds in residential closing is the practice of law

In Doe Law Firm v. Richardson, the Supreme Court held that the disbursement of funds in the context of a residential real estate loan closing cannot and should not be separated from the process as a whole. Hence, the Court concluded that the disbursement of the funds must be supervised by an attorney. The Court did not specify the form that supervision must take, but simply stated that the attorney's duties includes overseeing this step of the closing process.

Yet another pitfall for real estate attorneys to avoid.

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