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CPR 201

October 19, 1978

Inquiry: An attorney regularly certifies title to a lender in connection with loans which the attorney closes for the lender and which are secured by deeds of trust in which the attorney is named as trustee. The attorney's fee for the closing and title certification is paid by the lender but borne by the borrower as an expense of the loan transaction. The deeds of trust, pursuant to GS Sec. 45-10 (b), give the lender the right to remove the trustee and to appoint a substitute trustee at any time.


If, upon learning that the hearing before the Clerk will be adversary within the meaning of CPR 137, the attorney-trustee resigns as trustee and the lender appoints a substitute trustee, may the attorney then ethically represent the lender in all further proceedings to foreclose the deed of trust?


Opinion. Yes, if the attorney does not have some duty to the borrower arising out of the loan or loan closing which would make it improper for such attorney to take a position adverse to the borrower.


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