Burford & Ryburn Partner Andy Cox was recently selected for publication in the Dallas Bar Association’s legal publication Headnotes.
Mr. Cox’s article entitled, “Ethical Considerations in Real Property Transactions,” discusses the moral quandaries associated with attorneys who may find themselves at an ethical crossroads when drafting documents on behalf of multiple parties in a real property transaction. Such a dilemma may arise when an attorney represents a lender in preparation of loan documents to be executed by the purchaser, where the lawyer is also asked to prepare the deed conveyed from the seller to the buyer with a retained vendor’s lien on behalf of the lender. Another potential conflict may arise where a lawyer simultaneously represents the property owner who has received a mechanic’s lien notice from an unpaid contractor and the lender who holds a deed of trust on the property in unrelated matters.
As Mr. Cox explains, “The particular facts of a given matter will shape the required ethical response.” Although the facts can vary, Mr. Cox advises practitioners to consult Rule 1.06 of the Texas Rules of Professional Conduct and Ethics Opinion 525 before undertaking to draft a real property instrument on behalf of multiple parties.