Special offer

Would this be considered practicing law?

By
Real Estate Agent 0488515

Several years ago I was trying to find a home for a buyer and ran across a listing where the listing agent had in MLS agent remarks that the following information must be included in the special provision of the contract.  

"Buyer understands that Seller and this dwelling is involved in a lawsuit that claims that the dwelling was initially purchased an financed at an overpriced amount and is offering this dwelling for a short sale in mitigation of Seller's and Lender's damages due to the overpricing.ii. Buyer understands that the Seller's acceptance is contingent upon the Seller's obtaining the Lender's permission and such permission may only be obtained after a bona fide arm's length offer to purchase has been received by the Seller. Buyer agrees that if Seller's lender does not respond before a date three days prior to Buyer's designated closing date, Buyer may1. Withdraw his/her offer and buyer's earnest money shall be returned.2. Extend the closing date for a period of 30 days." 

Lucky for me the buyer had no interest in this particular property but if they had I think I would have:

1 Told the buyer to contact a real estate attorney.

2 Advised the listing agent we would not comply with their request.

What would you have done?

Comments (8)

Steve Shatsky
Dallas, TX

Hmmm.... good questions and I am not sure what the answer is.  I suppose the answer to your title question is "Maybe".  If the paragraph was written by an attorney for the seller then I would say it would be less likely than if the agent wrote it him/herself.  To be safe, I would likely submit the offer without the wording and have the seller insert it if they wanted it there, then if it came back with that inserted advise the buyer to have an attorney review it for it's applicability and implications.  That way I, as the non-attorney agent, would not have inserted anything that could be construed as practicing law.  How's that for an answer?

Oct 25, 2008 07:11 AM
Don Eichler
Eichler Properties - Granbury, TX

Richard, That would not be practicing law but only inserting terms as per sellers instructions but I can not give you this advice because I would be practicing law :)   <:>

Oct 26, 2008 09:08 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Steve, Erica, and Don - thanks for commenting.

Oct 26, 2008 11:12 PM
South Austin Real Estate Blog
Sky Realty South Austin - Austin, TX

I would be totally flummoxed!! Then I would ask my Broker, then I would call the Corporate Attorney, no way would I add all of that to a contract without contacting all of the above first.  Mostly, I would be like you and REALLY Happy the buyer didn't want to write the offer.

Oct 27, 2008 12:28 AM
Ed Newman
Alamo Infrared, LLC - Midvale, UT

Thanks for posting this information, I will be sure to pass it on 

Oct 05, 2010 03:39 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Thank you for thanking me. If it makes you happy to pass on old information then please do

Oct 05, 2010 06:50 AM
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Excellent information I will forward it if that is ok? thank you!!!

Dec 17, 2012 09:33 PM