Texas Real Estate Sales Agent ExamTexas Real Estate LawMedium
A licensed real estate sales agent is approached by a client who wants to lease a commercial property. The client asks the agent to prepare a commercial lease agreement for a term of five years. Which of the following statements accurately reflects the sales agent's authority regarding this request under TREC Rules?
- AThe sales agent is prohibited from drafting commercial lease agreements, as this constitutes the unauthorized practice of law.
- BThe sales agent can draft the lease agreement, but only if an attorney reviews and approves it.
- CThe sales agent may prepare the commercial lease agreement using a standard TREC-promulgated form.
- DThe sales agent may prepare the lease if they have completed specific TREC-approved commercial leasing courses.
Show answer & explanationAnswer & explanation
Correct answer: A. The sales agent is prohibited from drafting commercial lease agreements, as this constitutes the unauthorized practice of law.
Real estate licensees are generally prohibited from drafting legal documents, including commercial lease agreements, as this constitutes the unauthorized practice of law. They should advise clients to seek legal counsel for such documents.
Why the other options are wrong
- B. Even with an attorney's review, drafting by an agent is generally considered unauthorized practice of law.
- C. TREC does not promulgate commercial lease forms; their forms are primarily for residential transactions.
- D. TREC-approved courses enhance knowledge but do not grant authority to draft legal documents like commercial leases.
Unauthorized Practice of Law (Texas - Lease Drafting)
Real estate licensees in Texas are generally prohibited from drafting legal documents, such as commercial lease agreements, as this is considered the unauthorized practice of law.
- Licensees cannot draft commercial leases.
- Licensees can fill in blanks on TREC-promulgated forms (residential).
- Clients should be advised to seek legal counsel for complex documents.
Memory trick: Legal forms are for Lawyers, not for Licensees.