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In re Opinion 710 of the Advisory Committee on Professional Ethics

New Jersey Supreme Court
939 A.2d 794 (2008)


The New Jersey Advisory Committee on Professional Ethics (the committee) received a request for a ruling on the ethics of a hypothetical real estate transaction, in which the parties intentionally inflated the sale price of a parcel of real property. As a result, the buyer's lender (plaintiff) loaned the buyer more money than was warranted. The transaction also featured a contractual seller's concession clause, pursuant to which the seller gave the buyer a purchase credit for the amount by which the property's price was inflated. The committee issued Opinion 710, holding that it would be unethical for a lawyer (defendant) to draft such a seller's concession, and implying that the lawyer could be liable to the lender for fraud. In response to many requests for clarification, the New Jersey State Bar Association asked the state supreme court to review Opinion 710.

Rule of Law


Holding and Reasoning (Per curiam)

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