GoDocs has identified several states that require involvement by a local counsel to either finalize a portion of the loan documents package or otherwise acknowledge a review for document compliance purposes. GoDocs has identified these states as Kentucky, Ohio, South Carolina and Texas. GoDocs has identified said states as ones that seem to actively enforce its UPL laws. Having said that, the customer’s risk tolerance may dictate a different approach, in which case, the customer may use the GoDocs LegalNet local counsel review feature or opt out of all or any of the local counsel reviews we have identified or include other UPL states as part of their preferred local counsel review states.
For these states where the customer opts into the GoDocs LegalNet local counsel review, DRAFT documents are sent to the respective GoDocs LegalNet firm before they are delivered to the customer or marked as complete and ready for use. These DRAFT files are automatically sent with the submission of Standard support orders and you will be alerted via a separate email once the local counsel has completed their review and uploaded finalized documents.
As a courtesy, the GoDocs invoice for such orders will include as cost items, certain legal fees payable in connection with the matter. These legal fees are not GoDocs fees and GoDocs does not receive any portion of those fees, nor do(es) the law firm(s) receive any portion of the GoDocs fees. Upon receipt of payment of such invoice GoDocs will pay the applicable law firm(s). Customers shall be responsible for any additional fees payable to the applicable law firm(s).
Below please find the applicable governing law in each of Kentucky, Ohio, South Carolina, and Texas, which construe the preparation of loan documentation or certain material documents in connection therewith, such as security instruments, as constituting the practice of law. To not involve an attorney could be tantamount to the unauthorized practice of law (“UPL”) in those states. Please note, a state’s case law may set forth the UPL law in that state as opposed to being codified in a statute.
Kentucky
Case Countrywide Home Loans, Inc. v. Kentucky Bar Ass’n, 113 S.W.3d 105, 121 & 127-128 (Ky. 2003); Fed. Intermediate Credit Bank of Louisville v. Kentucky Bar Ass’n, 540 S.W.2d 14, 15 (Ky. 1976)
Ohio
Land Title Abstract & Trust Co. v. Dworken, 193 N.E. 650, 652 (Ohio 1934)Also note two relatively recent advisory opinions: Supreme Court of Ohio, Advisory Opinion UPL 2008-03, 1 (2008); Supreme Court of Ohio, Advisory Opinion UPL 2008-02, 2 (2008)
South Carolina
Doe v. McMaster, 585 S.E. 2d 773, 777 (S.C. 2002); State v. Buyers Service Co., Inc., 292 S.C. 426 (1987); In re Duncan, 65 S.E. 2010, 211 (S.C. 1909); Wachovia Bank v. Coffey, 698 S.E.2d 244, 247-48 (S.C. Ct. App. 2010)
Texas
Texas Gov’t Code §§ 83.001, 83.006
Can I request a Rush on outside counsel review?
If you have not placed the order, please select RUSH for "Review Priority/LegalNet Priority on the Orders page before placing your order.
If you have already placed the order, please send in a ticket with the Loan ID # and we can check with outside counsel if they have the capacity to handle a Rush review. Please keep in mind the total review fee including a RUSH is $500.