To Avoid Unauthorized Practice of Law, Stay within the Scope of Your License

State licensing laws prohibit licensees from performing tasks best left to licensed attorneys.

How can you best avoid even unintentional unauthorized practice of law?

• Don’t draft your own agreements or forms.

• Encourage the client to engage an attorney to draft the form or have your client draft the form. Do not draft the form yourself.

• Make changes to forms (adding or striking provisions) with caution. Obtain initials and dates from both parties to any changes made after contract execution.

• Use standard, approved language in contingencies, addenda, & additional provisions areas.

• Don’t charge a fee for preparing transaction documents.

Don’t interpret contract provisions. You can generally explain the purpose of a provision but don’t provide advice to the client regarding the legal implications of those provisions.

Acceptable Explanation: “This clause in the contract describes what happens if either party breaches the contract.”

Crossing the Line: “This clause in the contract says that if the seller breaches the contract, you’re guaranteed a full refund of your earnest money.”

• Always encourage clients to seek legal advice before signing any legal document.

• Don’t advise clients on landlord/tenant rights and responsibilities.