Almost all states have laws that prohibit the unauthorized practice of law. In the majority of states (National View) practicing law includes drafting contracts on behalf of another. This includes real estate related contracts and purchase agreements. However most states do permit non-attorney brokers to assists and advise clients in completing standard fill-in-the-blank purchase agreements. In most states, non-attorney brokers who draft real estate related contracts (sales contracts) may be prosecuted for engaging in the unauthorized practice of law.
A minority of states deviate from this general rule. Virginia has an exception that permits Real Estate brokers to prepare sales contracts for their clients without engaging in the unauthorized practice of law. Even where prohibited, licensees may generally assist and advise clients with standardized forms so long as they do not charge an extra fee.
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