Texas State Real Estate Exam- Standards of Conduct (Unauthorized Practice of Law)

It is acceptable and NOT considered to be engaging in the unauthorized practice of law for a real estate licensee to complete a contract form for the sale, exchange, lease, or option of an interest in real property if it is done in a way that is incidental to that person acting as a broker, provided that:

-The form used was adopted by TREC for that type of transaction. -The form was prepared by a Texas attorney and approved for that type of transaction. -The form was prepared by the property owner, or prepared by an attorney and then requested by the property owner.

The unauthorized practice of law is defined as:

acting outside the scope of one's license, offering legal advice, or drafting legal forms

TREC will suspend or revoke the license of any license holder who engages in the unauthorized practice of law such as:

drafting a real estate contract or instrument that transfers or otherwise affects an interest in real property, or by advising someone regarding the legality or validity of a real property title or instrument

Licensees are allowed to help clients fill in the blanks on contract forms and draft addenda using standard legal language; however, they may not offer ________ ____________ or draft _______ _______________.

legal advice or draft legal documents.

Licensees should know and understand tenant rights, but be careful not to advise clients on their ________ and _____________, as the latter crosses in the world of law.

rights and responsibilities

License suspension or revocation are possible outcomes for licensees who act outside the scope of their license by engaging in:

the unauthorized practice of law.