Landmark Decision Expected in Massacusetts--New Definitions of what constitues the "practice of law" will be determined by the Massachusetts Supreme Judicial Court

The United States Court of Appeals, on June 21, 2010, has handed down a decision which may have long-term effects for the Massachusetts real esate community. In the matter of REBA versus NREIS, (No. 1809-US Court of Appeals) the First Circuit, with Justice Lynch writing the opinion, reversed the Massachusetts District Copurt Opinion of Chied Judge, G. Joseph Tauro, and certified the case to the Massachusetts Supreme Judicial Court ("SJC")for definition as to what constitutes "the practice of [coveyancing] law in Massachusetts".

The actual impact of this decision will hinge on the SJC's definition of the practice of real estate law. NREIS had claimed that the elements of a real estate closing, per se, did not constitute the practice of law but were merely adminsitrative exercises. This position was given legal significance when the Massachusetts District Court gave a favorable opinion.

The opinion of the First Circuit may change many things including whether NREIS, and similarly constituted entities may conduct closings without a more meaningful involvement for attorneys. The First Circuit's opinion was that defining what is the practice of law in these areas requirea state, and not Federal, determination.

I will keep each of you informed as to what the Massachusetts Supreme Judicial Court determines. Whatever they decide will have an impact on the way real estate law is practiced in Massachusetts for the years to come. As a practicing Massachusetts real estate attorney for more than 42 years, this is an extremely important decision, and it will definitely affect the direction of my career.