Preparation of contracts and the unauthorized practice of law
Lesson 50 of 87 · All lessons · Up next: Essentials of a valid contract →
Contract preparation has a boundary
A Florida real estate license authorizes brokerage work, not the practice of law. In ordinary transactions they handle, licensees may complete appropriate attorney-prepared contract forms with the parties' agreed factual and business terms, such as names, price, deposit, and closing date. This limited role does not authorize a separate contract-preparation fee.
Completion versus legal drafting
Entering an agreed price is factual completion. Creating a custom indemnity provision for a boundary dispute is legal drafting, even if typed into an additional-terms blank. A customer's consent, broker approval, or experience does not authorize the practice of law. Individualized advice about enforceability, legal rights, and remedies belongs with an attorney. A sales associate should involve the employing broker and refer legal questions to counsel before the parties rely on an answer or sign language requiring legal review.
Florida title opinions
Under Fla. Stat. § 475.25(1)(j), a licensee must not opine that title is good or merchantable unless correctly relying on a current opinion of a licensed attorney. A licensee must also advise a prospective purchaser to consult an attorney about title merchantability or obtain title insurance. A seller's assurance, an old deed, or a licensee's own search does not substitute for the required basis for a title opinion.
Exam approach: Identify the service requested. Complete agreed business terms within the permitted role; refer custom legal language, legal advice, and unresolved legal questions to an attorney.
Key terms
Sample questions
Which task falls within a Florida sales associate’s limited contract-completion role in an ordinary transaction the associate handles?
Reveal answer
Correct answer: Entering the agreed price in an appropriate attorney-prepared form
Entering agreed business information in an appropriate form is permitted completion; custom drafting and individualized legal advice exceed that role.
A Florida buyer and seller agree on a deposit amount. An appropriate attorney-prepared contract has a blank for that amount. What should their sales associate do?
Reveal answer
Correct answer: Enter the agreed amount within the associate’s brokerage role
Recording the agreed deposit amount is factual completion of the appropriate form.
A seller asks a Florida associate to write a clause making the buyer indemnify the seller for a boundary lawsuit. What is the appropriate response?
Reveal answer
Correct answer: Refer the requested legal drafting to an attorney
A custom indemnity provision requires legal drafting, beyond ordinary form completion.