Client agrees to the terms of the contract for services and Attorney assists his clients in finding a house on which they decide to make an offer. Attorney then assesses the house's marketability, advises the clients on price, and drafts a contract for purchase. Seller hereby authorizes and directs the settlement agent to disburse to the Listing Broker and the Selling Attorney from the Seller's proceeds the respective proceeds of the fee at settlement. You advise that the contract was signed by both the Seller and the Buyer. You state that Clients agreed to this stipulation and that the contract is transferred to the standard Northern Virginia Association of Realtors forms provided by the broker representing the Seller.
Sellers subsequently decide to obtain separate counsel for the settlement.
You advise that, at closing, on the HUD-1 settlement sheet, the Listing Company and Attorney are each listed as due a real estate commission, and such commissions are paid from the proceeds of the sale. In addition, the buyer pays Attorney a separate amount for his settlement services. You state that at no time during negotiations or at settlement was Attorney's claim to compensation from the proceeds of the sale ever challenged. Also, at no time during negotiations or settlement did Attorney ever identify himself as a real estate broker or a real estate agent. Finally, you indicate that, several weeks after closing, Attorney receives a letter from the Listing Company's corporate attorney alleging that Attorney has acted improperly in this transaction.