CPL Landman Ethics & Professional Conduct 3 — Questions and Answers
Question 1: Under the AAPL Standards of Practice, a landman who is uncertain about a legal question affecting a title should:
- Render a definitive legal opinion based on experience
- Recommend consulting a licensed attorney (Correct answer)
- Proceed without noting the uncertainty to avoid alarming the client
- Issue a blanket disclaimer and proceed
Correct answer: Recommend consulting a licensed attorney
Landmen must recognize the boundary between landman practice and the unauthorized practice of law, referring legal questions to attorneys.
Question 2: Which ethical obligation applies when a landman represents both the buyer and seller in a mineral rights transaction?
- Dual representation is prohibited without full disclosure and informed consent (Correct answer)
- Dual representation is standard practice and requires no disclosure
- The landman must favor the buyer as the client paying the fee
- Dual representation is allowed if the transaction is under $100,000
Correct answer: Dual representation is prohibited without full disclosure and informed consent
Representing both parties creates a conflict of interest that requires full disclosure and informed written consent from both parties before proceeding.
Question 3: A CPL learns that a colleague submitted a fraudulent title opinion. What is the appropriate course of action?
- Ignore it to preserve professional relationships
- Report the conduct through appropriate channels, including the AAPL if necessary (Correct answer)
- Inform only the client who was directly affected
- Conduct a private investigation before taking any action
Correct answer: Report the conduct through appropriate channels, including the AAPL if necessary
Reporting known professional misconduct is an ethical duty that protects the integrity of the profession and the public.
Question 4: How does the AAPL Code of Ethics address the responsibility of a landman to stay current with industry standards and regulations?
- Continuing education is optional and has no ethical dimension
- Landmen have an ethical duty to maintain and improve professional competence (Correct answer)
- Only CPLs with fewer than 5 years of experience need continuing education
- Competence requirements only apply when working on federal leases
Correct answer: Landmen have an ethical duty to maintain and improve professional competence
The AAPL Code requires members to maintain professional competence through ongoing education and awareness of industry developments.
Question 5: When preparing a run sheet for a client, a landman discovers a gap in the chain of title. Ethically, the landman should:
- Omit the gap to present a clean title report
- Document the gap accurately and advise the client accordingly (Correct answer)
- Correct the gap in records without client notification
- Proceed with leasing and mention the gap only if asked
Correct answer: Document the gap accurately and advise the client accordingly
Accurate documentation and full disclosure of title defects is a core ethical obligation that protects the client's interests and the landman's integrity.
Question 6: What does 'fairness to all parties' require of a landman in a pooling agreement negotiation?
- Securing maximum terms for the client regardless of impact on other parties
- Presenting accurate information and not using deceptive tactics against opposing parties (Correct answer)
- Favoring the party who will pay the higher professional fee
- Limiting information shared with landowners to gain leverage
Correct answer: Presenting accurate information and not using deceptive tactics against opposing parties
Fairness requires honest dealing and prohibits using deceptive or manipulative tactics even when zealously representing a client.
Question 7: A landman suspects that a title examiner's report contains errors that may have been intentional. The landman's ethical duty is to:
- Accept the report to maintain professional courtesy
- Flag the discrepancy and bring it to the attention of appropriate parties (Correct answer)
- Correct the errors silently in the final documentation
- Submit the report as received and disclaim personal responsibility
Correct answer: Flag the discrepancy and bring it to the attention of appropriate parties
A landman has an ethical duty to identify and flag errors in work product that may affect the client or the integrity of the transaction.
CPL Landman Ethics & Professional Conduct 3
Under the AAPL Standards of Practice, a landman who is uncertain about a legal question affecting a title should: