Risk of Practicing Law Without Authorization in Real Estate: A Safe Approach

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.


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.

Legal and Tax Disclaimer

Please be advised that the content presented in this blog is for informational purposes only and should not be construed as legal or tax advice. The articles and information provided here are written from the perspective of a real estate agent affiliated with Keller Williams, and do not represent legal or tax counsel.

As the author, I am a licensed real estate professional under Keller Williams, holding Brokerage DRE License Number: #02197031. However, it is important to note that my expertise is in the field of real estate, and not in legal or tax matters. The insights and opinions shared on this blog are based on my experiences and knowledge in the real estate industry and should be treated as general guidance rather than definitive legal or tax advice.

For specific legal or tax concerns relating to any real estate transactions or investments, readers are strongly encouraged to consult with a qualified attorney or tax advisor who can provide tailored advice based on your individual circumstances and the latest legal and regulatory requirements.

The information on this blog is provided "as is" without warranty of any kind, and I, along with Keller Williams and its affiliates, disclaim all liability for any loss, damage, or misunderstanding arising from reliance on the information contained herein.

Related news

Leave a Comment

Your email address will not be published. Required fields are marked *

Get your FREE guide

Enter your email so we can send you your guide

Secure your space in our webinar.

Don't worry if you can't attend: we'll send you the recording!