Unauthorized Practice of Law in Oregon

Other

Unauthorized Practice of Law • ORS 9.160 provides that, except as provided in the statute, a person may not practice law or represent that the person is qualified to practice law in Oregon, unless the person is an active member of the Oregon State Bar.

• Subsection (4) of that statute contains the following carve out to the general prohibition: “(4) A title insurer authorized to do business in this state, a title insurance agent licensed under the laws of this state or an escrow agent licensed under the laws of this state is not engaged in the practice of law in this state in violation of … this section if, for the purposes of a transaction in which the insurer or agent provides title insurance or escrow services, the insurer or agent: (a) Prepares any satisfaction, reconveyance, release, discharge, termination or cancellation of a lien, encumbrance or obligation; (b) Acts pursuant to the instructions of the principals to the transaction as scrivener to fill in blanks in any document selected by the principals; (c) Presents to the principals to the transaction for their selection any blank form prescribed by statute, rule, ordinance or other law; or (d) Presents to the principals to the transaction for their selection a blank form prepared or approved by a lawyer licensed to practice law in this state for one or more of the following: (A) A mortgage. (B) A trust deed. (C) A promissory note. (D) An assignment of a mortgagees interest under a mortgage. (E) An assignment of a beneficial interest under a trust deed. (F) An assignment of a sellers or buyers interest under a land sale contract. (G) A power of attorney. (H) A subordination agreement. (I) A memorandum of an instrument that is to be recorded in place of the instrument that is the subject of the memorandum. (5) In performing the services permitted in subsection (4) of this section, a title insurer, a title insurance agent or an escrow agent may not draft, select or give advice regarding any real estate document if those activities require the exercise of informed or trained discretion.”

• The remaining pertinent subsections of the statute set forth that: (i) In performing the permitted services, a title insurer, a title insurance agent or an escrow agent may not draft, select or give advice regarding any real estate document if those activities require the exercise of informed or trained discretion.

(ii) The exemption does not apply to any acts relating to a document or form that are performed by an escrow agent under subsections (4)(b), (c) or (d) unless the escrow agent provides to the principals to the transaction a notice in at least 12-point type in the form set forth in subsection (6) of the statute.

(iii) The exemption does not apply to any acts relating to a document or form that are performed by an escrow agent under subsection (4)(b), (c) or (d) of this section for a real estate sale and purchase transaction in which all or part of the purchase price consists of deferred payments by the buyer to the seller unless the escrow agent provides certain items specified in subsection (7) to the principals to the transaction.

Cross-References

• Oregon
• Unauthorized Practice of Law