Opinion 39
Question Presented
Is it a violation of the Canons of Ethics for an attorney, who knows the property in question to be a homestead, to follow the regular practice of having the owner convey to a third party who reconveys to the owner retaining a vendor's lien, or who executes a mortgage and reconveys to the owner who assumes the mortgage?
18 Baylor L. Rev. 212 (1966)
DUTY OF AN ATTORNEY TO THE LAW - HOMESTEADS
An attorney who knows the property in question to be a homestead may not have the owner convey to a third party who reconveys to the owner retaining a vendor's lien, or who executes a mortgage and reconveys to the owner who assumes the mortgage.
Canon 29.
It is the unanimous opinion of this committee that such practice is a violation of the canons. Some members cited American Bar Canons 15 and 32, Texas Bar Canon 29, and Article 309 of the Revised Civil Statutes of Texas in support of their views. The other members expressed the view that such practice constitutes a subterfuge which has been frequently condemned by the courts, and should be, and is, condemned by this committee. (10-0)
Bluebook Citation
Tex. Comm. On Professional Ethics, Op. 39 (1951)