The North Carolina Bar Association has stated, “Generally, a real estate agent can negotiate strictly financial terms on behalf of the client. Once questions arise about the legal rights of the client, such as whether a deficiency judgment may be entered or if there will be a complete release of liability or if there is a pending foreclosure, the agent is no longer negotiating financial terms, but is negotiating a legal settlement. That would be the practice of law.” Undertaking short sale negotiations when the foreclosure process has already commenced leaves agents open to the liabilities and responsibilities normally associated with an attorney. There are also issues concerning the unauthorized practice of law. The Unauthorized Practice of Law is a Class 1 misdemeanor criminal offense that may be prosecuted by the local district attorney. There are also issues with agents undertaking short sales as related to the North Carolina Debt Adjuster Statute. The violation of this statute also could expose an agent to criminal liability. Get in touch with us for further explanation on why hiring Wilde Law Firm, PLLC to work on your short sale protects your interests.
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