Texas Real Estate Sales Agent ExamTexas Real Estate LawHard
A real estate sales agent is representing a buyer who is making an offer on a residential property. The buyer wants to include a provision in the contract that is not covered by any existing TREC-promulgated addenda. The sales agent drafts this special provision directly into the 'Special Provisions' paragraph of the TREC One to Four Family Residential Contract (Resale). What is the consequence of this action under TREC Rules?
- AThe sales agent must obtain written consent from their sponsoring broker before drafting such a provision.
- BThe contract will be automatically voided due to the alteration of a promulgated form.
- CThis is a permissible action, provided the provision is clear and unambiguous.
- DThe sales agent has engaged in the unauthorized practice of law.
Show answer & explanationAnswer & explanation
Correct answer: D. The sales agent has engaged in the unauthorized practice of law.
While the 'Special Provisions' paragraph exists, using it to draft complex legal language or provisions not covered by promulgated forms, without an attorney, is considered the unauthorized practice of law for a real estate licensee. Licensees are generally limited to filling in blanks on promulgated forms or using forms prepared by attorneys.
Why the other options are wrong
- A. Broker consent does not authorize an agent to engage in the unauthorized practice of law.
- B. The contract is not automatically voided, but the agent faces disciplinary action from TREC.
- C. Clarity does not negate the fact that drafting legal language is typically reserved for attorneys.
Special Provisions & Unauthorized Practice of Law (Texas)
Real estate licensees are prohibited from drafting legal language in the 'Special Provisions' paragraph of TREC forms if it goes beyond factual statements and constitutes the unauthorized practice of law.
- Paragraph 11 (Special Provisions) is for factual statements.
- Drafting legal provisions is unauthorized practice of law.
- Licensees should advise clients to consult an attorney for specific legal language.
Memory trick: Special Provisions: 'S'tick to 'S'imple 'S'tatements, 'S'top drafting 'S'pecific 'S'tatutes.