Non-Georgia-Attorney-Owned Recruiting Firms Violate Georgia’s Unauthorized Practice of Law Statute

The Official Code of Georgia (O.C.G.A.) section 15-19-51. (a) (5) makes clear that it is the “Unauthorized practice of law … [and] (a) it shall be unlawful for any person other than a duly licensed attorney at law: (5) to furnish attorneys or counsel” for the purpose of closing personal or real property loans within the State of Georgia.

Thus, all attorney recruiting firms and companies using attorney recruiting firms should beware!

Only companies owned by a Georgia licensed attorney may hire persons to engage in acts that constitute the practice of law, including “conveyancing,” e.g., the transfer or pledge of real property as collateral for mortgage loans.

O.C.G.A. § 15-19-50 (2006) defines the practice of law, and specifies actions that are prohibited as the Unauthorized Practice of Law, including a requirement that only law firms may be involved in conveyancing, e.g., the transfer or pledge of real property as collateral for mortgage loans.

The preparation of court documents; conveyancing; legal instruments of all kinds where legal rights are secured; the rendering of opinions as to the validity or invalidity of titles to real or personal property; the giving of any legal advice; or any action taken for others in any matter connected with the law.

O.C.G.A. § 15-19-51 states that unless otherwise licensed to practice law, it is the Unauthorized Practice of Law in Georgia to furnish legal services, give legal advice or to furnish attorneys or counsel; or to render legal services of any kind.

O.C.G.A. § 15-19-51 (5) prohibits non-Georgia lawyers from furnishing attorneys or counsel as professional recruiters. It is illegal for a non-Georgia lawyer to recruit or to furnish Georgia-licensed attorneys to render legal services for others within the State of Georgia.

Thus, non-Georgia-attorney-owned professional recruiting companies, and the companies that hire professional recruiters for title companies, mortgage brokers, and lending institutions may be in violation of Georgia’s Unauthorized Practice of Law statute and subject to criminal prosecution and civil liability in the State of Georgia.