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Each bank in a city employs attorneys on retainer basis for $100 per year. Each bank then refers its customers to its attorney who charges such customers a fee for his services based upon regular fee charges.
It is a violation of the Canons of Ethics (a) for an attorney so retained to advise customers of the bank upon applying for real estate loans that if they want the bank to make the loan, they must employ the bank's attorney to prepare all papers involved in the transaction; or (b) for the officers of the bank to automatically refer their customers to the bank's attorney without inquiry as to their choice of counsel; or (c) for the bank's officers to advise their customers that the bank has an attorney and they do not need to employ their own attorney?
2. Is it a violation of the Canons of Ethics for an attorney representing the buyer in a real estate transaction to advise the seller as follows: "I am representing----, buyer, and will inspect the papers for him and prepare the deed of trust and notes. If you want me to do so, I will prepare your deed for $---- (nominal fee) and will charge that fee to the buyer. If he want you to pay this, and you agree, he can so provide; however, I want you to understand that I am not representing you in this transaction"?
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