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Practicing without a license

By
Real Estate Agent with Keller Williams Realty

Would you operate on yourself? Certainly not. Doing so without training (unless you're in a life raft in the middle of the ocean) is what you might call a Bad Idea.

Would you operate on someone else? If you're not trained, you'll likely injure them. And if you're not licensed, you'll probably be held liable for it.

Realtors similarly are cautioned not to practice law without a license. That's why we use board-approved, attorney-drafted forms for the vast majority of transactions. For those unusual transactions that fall outside the areas covered by existing forms and procedures, we consult an attorney. That's for the protection of the client, as well as for ourselves.

So when a buyer of ours recently appended a standard FAR (Florida Association of Realtors) mold addendum with his own language, both we and the listing agent balked. The buyer was incensed, insisting that the sentence he added was clear and needed no interpretation.

Problem was that the buyer was not licensed to practice law in this state or in any other, for that matter. His handwritten addition did not address a number of issues covered by the FAR addendum and may well have superseded them. If contention resulted (quite likely, given the circumstances), it would almost certainly have to be resolved before a judge (that's spelled "L-A-W-S-U-I-T"). This is expensive and time-consuming, and not in the best interests of anyone involved. Like operating on yourself, it's what you'd call a Bad Idea.

The closing attorney offered (for free) to draft an addendum that would address the client's particular concerns in a fashion that would cover all  the angles. Sadly, and for reasons beyond fathoming, the buyer refused to budge. That was the end of that deal. Also the end of the relationship with that buyer. Clients are free, of course, to choose to practice law without a license, but they'll need a different realtor do it with!

Christopher Pike, 803.727.7800
Keller Williams® Realty - Columbia, SC

Cynthia,

Sorry to hear that he buyer made it a deal breaker, but good to hear the buyer was fired!!!

Christopher

Aug 01, 2008 01:10 AM
Anne Hensel
South Beaches Real Estate Professionals - Saint Petersburg, FL
Realtor - Broker - St. Pete Beach, Treasure Island

I believe there are some very simplestraight forward things the buyer or seller can change, but as soon as the sentence has more than 10 words it might be a lawyers job. I believe in hiring a professional. "I can wash my car but I can not repair it."  that how I usually explain it.

Aug 01, 2008 01:24 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

It is illegal for a real estate licensee to practice law without a license, which is why it's dangerous for agents to write complicated addenda. 

However, if the consumer is writing their own addenda, they're not practicing law, they are merely negotiating terms and/or conditions. 

That said, although we have received numerous consumer, buyer/seller composed addenda, our clients have wisely always countered them out or countered them into something based on standard contract paragraphs already approved by our Association of Realtors. 

This is important because our E&O insurance requires that we use "board approved forms". 

Very intereting article.  Thanks.

Aug 01, 2008 01:50 AM