ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, September 26, 1996 TAG: 9609260043
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: RICHMOND
Attorney General Jim Gilmore says he needs more information before he can evaluate a State Bar proposal to ban non-lawyers from conducting real estate closings.
Specifically, Gilmore said he has seen no evidence that lay settlement companies are harming consumers.
Gilmore also noted there has been no discussion of regulating lay settlement companies, rather than banning them altogether.
The State Bar's finding does "not support the conclusion that a ban on non-lawyers is the least restrictive means of protecting the public," Gilmore said in an opinion released this week.
At issue is a high-stakes turf battle between lawyers and companies - such as real estate brokerages, title agencies and banks - over fees charged to buyers in real estate transactions.
Attorneys contend that buyers need a lawyer sitting beside them at the table to answer any last-minute legal questions about a home purchase or other realty transaction.
But the settlement agencies say consumers should be given the choice to forgo legal expenses, particularly in routine transactions such as home refinancings.
A State Bar subcommittee has issued an opinion stating that lay settlement companies engage in the unlawful practice of law by providing buyers with legal documents and answering their questions.
The State Bar Council will vote on the opinion at a regular meeting Oct. 17-18 in Roanoke. If approved, the Virginia Supreme Court will decide whether to give the non-lawyer ban the rule of law.
LENGTH: Short : 39 linesby CNB