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Drafting Purchase Agreements

By
Real Estate Agent with Nesbitt Realty at Condo Alexandria 0225-089134

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.

Comments(6)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Arizona is the same. Real Estate agents can write contracts legally.

Apr 07, 2012 01:28 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Will -- in California we don't practice law or give tax/accounting advice unless we are licensed to do so but we assist our buyers/sellers with the purchase agreement as well as related disclosures and documents.   In Southern California, we use escrow and title companies to close our transactions, not attorneys.   

Apr 07, 2012 02:37 AM
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON
Food points Will, here in Manhattan New York the agents do not draft contracts so we use Real Estate attorneys to draft contracts.
Apr 07, 2012 11:38 AM
Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

That's interesting info.  Here in NYC we don't draft up anything.  Eveything goes straight to the lawyers.

Apr 07, 2012 01:22 PM
Yolanda Cordova-Gilbert
Richmond, TX

Will,

             Here in Texas unless the lawyers are the only ones who can pratice law.

Apr 11, 2012 07:08 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Hi Will,

justs topping by to say hello and see if you are still posting blogs. Take care Mr. Will.

Apr 28, 2012 03:55 AM