When it comes to helping a buyer, in this case, Yolanda, complete an offer to purchase a home in Sherman Oaks, it is essential that real estate agents follow safe and legal practices. A crucial aspect in this process is to avoid unauthorized practice of law, and an effective way to achieve this is the use of standard contracts promulgated by a state agency or real estate board.

The Role of the Real Estate Agent

Real estate agents play a critical role in the real estate transaction, and in many cases, this involves completing contracts and formulating offers on behalf of their clients. However, it is vital to understand the limits of our role and avoid crossing the line into the unauthorized practice of law.

Unauthorized Practice of Law

The unauthorized practice of law occurs when an unauthorized individual or entity provides legal services that normally only a licensed attorney can offer. In the real estate context, this may include specific legal advice on contract terms, interpretation of contract clauses, and drafting custom agreements.

Use of Standard Contracts

A sure way to avoid the unauthorized practice of law is to use standard contracts that have been promulgated by a state government agency or a recognized real estate board. In California, for example, the California Real Estate Association (CAR) issues standard contracts that are designed specifically for real estate transactions in the state. These contracts have been legally reviewed and approved, providing an additional layer of security and protection for both agent and client.

An example is the California Residential Purchase Agreement and Joint Escrow Instructions.

Advantages of Standard Contracts

The use of contracts Standard not only reduces the risk of unauthorized practice of law, but also offers other advantages. These contracts are usually equitable and fair to both parties, and their language is clear and easy to understand. This helps ensure that all parties in the transaction are on the same page and avoids misunderstandings.

Conclusion

By using standard contracts promulgated by a state agency or recognized real estate board, real estate agents can significantly reduce the risk of committing an unauthorized practice of law. This not only ensures legality and fairness in the transaction, but also protects the interests of customers and provides peace of mind to both buyers and sellers. In Sherman Oaks and throughout California, this safe approach is an essential part of the real estate profession.