Legal Hotline: What Is It?
A legal hotline is a type of service often provided by state or local Realtor associations. Typically a hotline is a call-in service, which means it’s not completely free and you can’t expect to place an unlimited number of calls per day. The service isn’t offered for free because it isn’t being staffed by volunteers – only licensed attorneys should be responding to legal questions a hotline offers. And if the legal advice is done as simply a series of questions and answers, attorneys will be earning more from less work if they charge up front for their time. When attorneys don’t charge by the hour, they generally have to charge per call and limit the amount of time they talk with you on the phone.
In Washington State, the legal hotline is operated by the Washington Association of Realtors (WAR) . WAR provides up to 12 legal hot line calls to each member office of WAR and 4 calls per month to members of local boards that are not WAR members. Each call is limited to 30 minutes in duration, including time for review of documents.
WAR Legal Hotline services are available to current WAR members only. The attorneys who staff the legal hotline are usually familiar with the real estate industry and the laws governing transactions within Washington State. They do not represent individuals in transactions, nor do they take a position on a pending transaction. Their role is to inform their callers of their legal rights and responsibilities as they apply to a variety of situations involved in a transaction.
It’s a good idea to have materials in hand when calling the legal hotline, and if you have paperwork or a contract that raises a question, don’t forget to have it nearby at call time.
The Perks for Washington’s Realtors
The Hotline is a key resource in reducing risk on every transaction for real estate agents. Real property transactions are inherently high-risk because of the cost and complexity of the business. As such, it’s critically important that real estate agents have access to a practical resource with immediate legal insight about their transactions. The Hotline helps realtors handle a wide variety of legal inquiries without having to pay by the hour, saving agents time and money.
One of the biggest benefits of the Hotline is that the staff attorneys write all the answers in plain English. Many real estate lawyers speak in legalese, which isn’t what real estate agents understand. The Hotline attorneys speak the same language as the realtors that call—avoiding legal lingo and abstract answers that don’t make sense in the real world when handling a transaction.
The Hotline provides realtors new peace of mind on every transaction. That means the lawyer is available to answer legal questions, draft contracts and certificates of limited liability companies, and talk through legal issues that arise on every deal without charging by the hour. The Hotline gives realtors confidence when doing the deal, as they know they can rely on legal guidance that represents their best interests, but similarly helps the buyer, seller or lender in the transaction.
How to Reach the Legal Hotline
Realtors in Washington State may access the Legal Hotline through www.warealtor.org. In addition to providing access to the Legal Hotline, membership with the Washington REALTORS Association is one of the requirements for access. The Legal Hotline operates Monday through Friday, from 9:00 a.m. PST to 4:30 p.m. PST. There is no requirement to schedule an appointment to access the Legal Hotline services. Upon accessing the Legal Hotline website, a prompt requests that you provide your NRDS number (this number is found on the REALTOR Association signage on your business card) and choose your REALTOR Association from the Pending Approval link. Once the Legal Hotline staff has verified your REALTOR Association membership, you will receive a confirmation of your eligibility to use the Legal Hotline services via email. Access to the Legal Hotline services by telephone is also available to Washington REALTORS members who first login to the Legal Hotline website using their NRDS number to acquire the contact information to use for telephone access.
How the Legal Hotline Can Help
A wide array of legal issues may face realtors in Washington State, but the hotline is most often accessed for questions regarding contract issues, fair housing, and disclosure requirements. When the real estate industry was affected by the Great Recession, callers often sought guidance on how to handle transactional issues such as short sales and bank-owned properties . Fair housing laws continue to raise questions, as do state and federal requirements for disclosures related to lead-based paint, environmental issues, home inspections, and sex offenders. Other common questions may be immigration-related issues, employment law, risk management for your practice, and license law. Real estate agents who find themselves in the midst of a transaction dispute can also consult the hotline for guidance on issues such as earnest money disputes and termination of agency agreements.
Examples of Legal Issues and Related Outcomes
Real-life scenarios and testimonials from Washington realtors who have called the legal hotline include callers who were facing lawsuits. For instance, last month, a broker contacted the hotline because she was named in a lawsuit with her client and the other agent. As a result of our attorney’s help, the association settled for a small sum like $1,000 and all parties were released from liability. The association had demanded approximately $50,000.
Another example is a broker who called the hotline because he was accused of messing up a short sale. After reviewing the facts with him, our attorney suggested a settlement and an indemnity agreement whereby the other side represented to the broker that he had nothing wrong. The complaint was dismissed and no suit was filed against the broker.
After a consumer contacted a broker: "You are in big trouble. Your company is being sued" – the broker called us for help. The alleged harms were really against the lender on bad closing documents that were prepared vs. any wrong-doing by the broker or his company. We advised the broker to remind the seller that the lender has to bring those claims – not him. The complaint was settled by the lender.
A broker recently called the hotline because his seller wanted to change brokers after the home was in escrow. The soon-to-be ex-broker thought the buyer might sue him if the current broker was replaced. Our attorney gave him several options including doing nothing if the broker believed that the seller was in breach of contract; transferring the listing agreement to the buyer; or terminating the listing agreement the broker has with the seller and forming a new one with the buyer. The broker was relieved to learn that the buyer could sue him if he replaced the current broker with himself – and he was contemplating the legal fees that could potentially come from the effort. We advised the broker to let the seller break the listing agreement as it was her breach. We also recommended the broker consult an attorney for further assistance.
A simple shortage in a trust account led to an audit, then an overdrawn check and a subsequent complaint to the Department of Licensing. Our attorney helped a broker respond to the complaint warning that the Department would force him to close his doors. The bottom line in this case was, again, a shortage in the trust account which was explained to the Department. The broker got the help he needed and the Department agreed to stop their investigation.
Examples and Advice in Action
The legal hotline is a powerful tool to have on hand, but the Washington REALTORS® Association also provides a suite of other resources. You can visit their website to view common FAQs or to request research of particular issues you’re having trouble with . You can also obtain legal documents that are available for subscription at their document library. For REALTORS® who are working through a challenging situation on the legal hotline, they offer a variety of seminars, classroom training, and webinars on ethics, agency, buyer breeding, and many other topics.