January 22, 2014
An important ethics opinion recently weighed in on the practice of some real estate professionals of “grossing up” the contract of sale and providing an equivalent credit at closing to offset the grossed up price. The opinion says that when the purchase price in a contract is “grossed up” and combined with an equivalent seller’s concession, the lawyer who participates in the transaction is ethically required to ensure that the grossing up of the price is disclosed in the contract.
If you would like to read the opinion and the history surrounding it in its entirety, it can be found here.