June 23, 2005

A reader comments on my comparison of brokers and salespersons:
While I agree that the Cunningham real estate deal sounds... corrupt as hell... you are mistaken on one point. A real estate salesperson is in no way comparable to a clerk or a paralegal in a law office.

Other than having their contracts reviewed and signed off on by their broker, they have all the rights and responsiblites as a broker. And even licensed brokers who work in an office usually get their contracts reviewed and signed off by the head broker in the office, or their assistant manager.

For that reason, many of the top selling and most experienced agents do NOT have a broker's license (I didn't and I was a top agent for almost 30 years off and on) since unless you own your own firm and need one, it really doesn't serve any real world purpose to have one.
The commenter is a salesperson who has both personal and professional experience with law offices, so I will of course yield to his expertise in this matter. It is an oversimplification to say that the responsibilities of a broker are similar to that of a lawyer, or that a salesperson does not have a good deal more independence in operating than a law clerk is allowed. When I've bought and sold property in the past, my aunt, a licensed salesperson, usually handles the transaction at my end; I couldn't even tell you the name of the broker, except that it was handled by Coldwell Banker.

However, I should point out that clerks and paralegals have taken on an increasingly important role in law offices, one that he perhaps underestimates. I happen to practice in an area of law, bankruptcy, in which most of the heavy lifting in representing a client is done by paralegals. That area of law is particularly paper-intensive, so the responsibilities of obtaining information from clients, filling out forms, and arranging pleadings for filing are almost entirely done by non-professionals. The attorney's job has become focused on reviewing (and signing off on) the paperwork, meeting with the client at the initial stages of the case, and appearing in court when necessary.

In fact, in larger firms, some paralegals and clerks become even more important than the associates they assist. Because of the fact that, as far as clients are concerned, there is no distinction between lawyer and clerk, it is especially important for the lawyer to perform his supervisorial responsibilities. I believe that the earlier analogy remains apt, at least in this limited way.

No comments: