Preparation of contracts and the unauthorized practice of law

Question 1

Which task falls within a Florida sales associate’s limited contract-completion role in an ordinary transaction the associate handles?

Accepted Answer

Entering the agreed price in an appropriate attorney-prepared form

Answer

Drafting a new indemnity provision

Answer

Advising which remedy a buyer should pursue after breach

Answer

Giving an independent opinion that title is merchantable

Question 2

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?

Accepted Answer

Enter the agreed amount within the associate’s brokerage role

Answer

Require an attorney to type the amount because it concerns money

Answer

Replace the deposit provision with a custom forfeiture clause

Answer

Collect a separate contract-preparation fee before entering it

Question 3

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?

Accepted Answer

Refer the requested legal drafting to an attorney

Answer

Draft it if both parties approve the business goal

Answer

Draft it in the additional-terms blank

Answer

Use the associate’s prior lawsuit experience to select wording

Question 4

A Florida associate says, “I entered the closing date and then wrote a new waiver of the buyer’s right to sue, so both were form completion.” Which assessment is best?

Accepted Answer

The agreed date is completion, but the custom waiver is legal drafting

Answer

Both are completion because they appear in one contract

Answer

Both require counsel because both affect the transaction

Answer

The waiver is completion if it uses a printed blank

Question 5

Under Florida’s title-opinion rule, what can properly support a licensee’s statement that title is merchantable?

Accepted Answer

A current licensed attorney’s opinion on which the statement is correctly based

Answer

The seller’s assurance that no title disputes have occurred

Answer

The licensee’s independent review of recorded deeds

Answer

A broker’s experience selling nearby properties

Question 6

A Florida associate finds an old deed and tells a purchaser that title is good based solely on that deed. What is the problem?

Accepted Answer

The opinion lacks the required current attorney-opinion basis

Answer

The associate needed the seller’s written permission to give the opinion

Answer

The opinion should have been given by the employing broker instead

Answer

The opinion is acceptable if the deed was recorded

Question 7

What advice does Florida’s title provision require a licensee to give a prospective purchaser?

Accepted Answer

Consult an attorney about title merchantability or obtain title insurance

Answer

Rely on the seller’s possession as proof of merchantable title

Answer

Ask the appraiser to certify legal ownership

Answer

Use the sales associate’s record search instead of legal review

Question 8

A Florida associate accurately relays a current attorney’s favorable title opinion but gives no advice to consult an attorney or obtain title insurance. Which conclusion follows?

Accepted Answer

The favorable opinion may be properly based, but the required purchaser advice is missing

Answer

Relaying the opinion satisfies both parts of the title rule

Answer

The associate violated the rule simply by relaying any attorney opinion

Answer

The missing advice matters only if the seller requests it

Question 9

A Florida customer signs a letter authorizing an associate to give advice on whether a disputed contract is enforceable. What should the associate do?

Accepted Answer

Refer the enforceability question to an attorney

Answer

Give the advice because the customer consented in writing

Answer

Give the advice if no separate fee is charged

Answer

Give the advice after the broker approves the letter

Question 10

A Florida broker who is not an attorney directs an associate to invent a liability-release clause. How should the associate handle the direction?

Accepted Answer

Explain that counsel should prepare the custom legal provision

Answer

Draft it because the broker accepts responsibility

Answer

Draft it if it is placed on a separate addendum

Answer

Draft it using language from an unrelated completed sale

Question 11

Which statement best describes the significance of an additional-terms blank in a Florida contract form?

Accepted Answer

The blank does not expand the licensee’s authority to draft legal provisions

Answer

The blank authorizes a licensee to create any clause the parties request

Answer

The blank converts legal advice into factual completion

Answer

The blank permits custom drafting if the licensee charges no fee

Question 12

A Florida associate proposes a separate fee solely for filling in a purchase contract under the limited form-completion permission. Which response is correct?

Accepted Answer

The limited permission does not authorize a separate contract-preparation fee

Answer

The fee is permitted if disclosed before the offer is signed

Answer

The fee is permitted if the broker receives it first

Answer

The fee is permitted when based on time spent completing blanks

Question 13

A buyer asks a Florida associate, “Should I sue for damages or force the seller to perform this contract?” What is the best response?

Accepted Answer

Refer the buyer to an attorney for advice about legal remedies

Answer

Choose the remedy most likely to preserve the commission

Answer

Choose the remedy used in the associate’s most recent dispute

Answer

Select a remedy after obtaining the buyer’s written approval

Question 14

A Florida associate calls a custom waiver “administrative wording” and charges nothing for it. Why does the legal-practice concern remain?

Accepted Answer

The work affects legal rights regardless of its label or fee

Answer

A waiver becomes legal drafting only when it is notarized

Answer

Free wording is permitted if the transaction closes

Answer

The concern disappears if the buyer initials the wording

Question 15

A Florida associate assures a purchaser that title is merchantable based on the seller’s promise that no one has complained. Which statement is correct?

Accepted Answer

The promise is not the required current attorney-opinion basis

Answer

The promise suffices if included in the sale contract

Answer

The promise suffices if the seller has owned the property for years

Answer

The promise suffices if the purchaser accepts the risk

Question 16

A current attorney opinion concludes that title will be merchantable after a specified lien is released. The lien remains. A Florida licensee says title is already merchantable. What is the strongest assessment?

Accepted Answer

The statement is not correctly based on the conditional attorney opinion

Answer

The statement is proper because an attorney wrote the opinion

Answer

The statement is proper because the opinion is current

Answer

The statement is proper if the seller expects to release the lien

Question 17

A Florida associate has handled hundreds of sales. A customer asks the associate to design a new clause releasing the seller from environmental liability. What does the associate’s experience change?

Accepted Answer

It may help identify the issue but does not authorize custom legal drafting

Answer

It permits drafting if the associate has seen a similar problem

Answer

It permits drafting if the clause is short

Answer

It permits drafting when the broker verifies the transaction history

Question 18

Which statement about a Florida licensee’s favorable title opinion is accurate?

Accepted Answer

The opinion must be correctly based on a current licensed attorney’s opinion

Answer

A licensee may rely on any attorney opinion, regardless of age

Answer

A licensee may independently certify title after reviewing the record

Answer

A licensee may give a favorable opinion if the buyer waives legal review

Question 19

A Florida associate reviews public records and finds no obvious liens. The associate then independently declares the title merchantable. What is the best assessment?

Accepted Answer

The search does not replace the required current attorney-opinion basis

Answer

The declaration is proper because public records were used

Answer

The declaration is proper if the search was thorough

Answer

The declaration becomes proper when the seller confirms the search results

Question 20

An attorney opinion approved title when a seller purchased years ago. New encumbrances have since been recorded. A Florida associate relies on the old opinion to assure today’s buyer that title is good. Which requirement is most directly missing?

Accepted Answer

A current attorney opinion supporting the present assurance

Answer

The seller’s signature on the old opinion

Answer

A broker’s endorsement of the old opinion

Answer

An appraisal showing the property retained its value

Question 21

A Florida seller asks an associate to determine whether a disputed cancellation notice legally ended a purchase contract. What should the associate do?

Accepted Answer

Refer the legal-effect question to an attorney and involve the broker

Answer

Decide based on how quickly the property could be resold

Answer

Decide after the seller signs a consent to rely on the associate

Answer

Rewrite the notice to make the cancellation effective

Question 22

Which question most clearly calls for an attorney rather than routine completion by a Florida associate?

Accepted Answer

Does this disputed clause prevent the buyer from recovering damages?

Answer

What purchase price did the parties agree to put in the price blank?

Answer

Which agreed deposit amount should be entered in the deposit blank?

Answer

What agreed closing date should be entered in the date blank?

Question 23

A Florida purchaser asks who should evaluate title merchantability. Which reply follows the statutory advice requirement?

Accepted Answer

Consult your attorney about merchantability or obtain title insurance

Answer

Ask the home inspector to confirm that ownership is clear

Answer

Use the property tax assessment as confirmation of good title

Answer

Rely on the listing broker’s statement that the seller owns the home

Question 24

A Florida associate enters an agreed price correctly, then adds a separate contract-preparation charge. Which evaluation is best?

Accepted Answer

The price entry fits limited completion, but the separate preparation charge does not

Answer

Both acts are permitted because the form was attorney-prepared

Answer

Neither act is permitted because the associate entered contractual information

Answer

The charge is permitted if the price entry contains no legal errors

Question 25

A Florida buyer wants a custom clause allocating liability for a pending lawsuit. The associate plans to draft it, obtain signatures, and ask an attorney to review it next week. What is the better course?

Accepted Answer

Refer the drafting to counsel before the parties sign or rely on it

Answer

Proceed because later review supplies the missing authority

Answer

Proceed if the clause is described as provisional

Answer

Have the broker sign the clause before obtaining attorney review

Question 26

A Florida associate tells a buyer to obtain title insurance, then independently assures the buyer that title is merchantable without an attorney opinion. Which assessment is correct?

Accepted Answer

The advice does not cure the unsupported favorable title opinion

Answer

The insurance advice makes the independent opinion permissible

Answer

The opinion is permissible if the buyer intends to buy coverage

Answer

The opinion is permissible because the buyer received a warning about title

Question 27

Which paired actions best fit a Florida associate’s role when preparing a purchase offer?

Accepted Answer

Record the agreed deposit in the appropriate form and refer a custom liability clause to counsel

Answer

Refer the deposit entry to counsel and draft the liability clause personally

Answer

Record the deposit and draft the liability clause after obtaining buyer consent

Answer

Draft the liability clause and charge a separate preparation fee

Question 28

In the limited Florida contract-completion role, which source of form language is appropriate for ordinary transactions the licensee handles?

Accepted Answer

An appropriate attorney-prepared form completed with agreed factual and business terms

Answer

Legal protections invented by the associate for the particular buyer

Answer

Clauses assembled by the associate to decide disputed legal rights

Answer

A custom waiver written by the broker solely under the broker’s real estate license

Question 29

A Florida broker tells an associate, “I am licensed as a broker, so I can independently certify merchantable title without an attorney opinion.” How should that claim be evaluated?

Accepted Answer

Broker licensure does not remove the current attorney-opinion requirement

Answer

It is correct because brokers supervise associates

Answer

It is correct if the broker has personally reviewed the deeds

Answer

It is correct if the broker puts the opinion in writing

Question 30

A current licensed attorney’s opinion supports a favorable title statement about Parcel One. A Florida associate uses it to assure a buyer that Parcel Two has merchantable title. What is wrong?

Accepted Answer

The assurance about Parcel Two is not correctly based on that opinion

Answer

Nothing, if both parcels have the same seller

Answer

Nothing, if the parcels are adjacent

Answer

Nothing, if the associate accurately quotes the favorable sentence

Question 31

An agreed closing date is missing from the appropriate contract form in a Florida sale. What action fits the associate’s limited completion role?

Accepted Answer

Enter the date the parties have agreed upon

Answer

Invent a new clause eliminating all liability for delayed closing

Answer

Choose a legal remedy for either party if that date is missed

Answer

Treat the missing date as permission to rewrite the default provisions

Question 32

Which distinction is central to identifying unauthorized legal work during Florida contract preparation?

Accepted Answer

Whether the licensee records agreed business terms or creates custom legal provisions

Answer

Whether the document is printed or electronic

Answer

Whether the customer prefers a short or long contract

Answer

Whether the terms are entered before or after the offer is discussed

Question 33

A Florida associate finds an attorney-prepared form that does not address the parties’ unusual liability arrangement. What is the best response?

Accepted Answer

Seek counsel for the unusual legal provision rather than inventing wording

Answer

Use it unchanged because attorney authorship establishes suitability

Answer

Write the missing legal arrangement into an unused blank

Answer

Ask the parties to approve the associate’s custom replacement provision

Question 34

A Florida associate plans to turn the broker’s transaction experience into a new clause barring future claims. The broker is not an attorney. Which action is appropriate?

Accepted Answer

Have an attorney address the requested restriction on legal claims

Answer

Draft the clause because the broker supplied the business rationale

Answer

Draft the clause if both parties accept the wording

Answer

Draft the clause and label it a transaction note

Question 35

A Florida licensee tells a prospective purchaser to consult an attorney about title merchantability and gives no personal title opinion. How does this compare with the advice requirement in section 475.25(1)(j)?

Accepted Answer

It follows one of the statute’s stated advice alternatives

Answer

It is deficient unless the licensee also independently certifies title

Answer

It is deficient because the licensee must advise both attorney consultation and insurance

Answer

It is deficient because the seller must give the advice instead

Question 36

A Florida buyer asks an associate to explain whether signing a newly proposed waiver would eliminate a particular legal claim. Which response best respects the associate’s role?

Accepted Answer

Refer the effect of the waiver to the buyer’s attorney before reliance or signing

Answer

State that a waiver cannot affect a claim if the buyer objects later

Answer

Give a legal conclusion because the waiver is part of a real estate sale

Answer

Give the conclusion if the associate also recommends title insurance

Question 37

A Florida purchaser says, “I trust the seller and do not need title advice.” What should the licensee do under the statutory advice requirement?

Accepted Answer

Advise attorney consultation on merchantability or obtaining title insurance

Answer

Omit the advice because trust in the seller replaces it

Answer

Ask the seller to assure the purchaser that title is good

Answer

Offer the licensee’s own title opinion instead of the advice

Question 38

A Florida associate says a current attorney opinion permits the associate to assure buyers about both title and the enforceability of an unrelated custom waiver. The opinion addresses title alone. What is the best assessment?

Accepted Answer

Correct reliance may support the title statement, but does not authorize advice on the waiver

Answer

The opinion expands the associate’s authority to all legal questions in that sale

Answer

The opinion cannot support any title statement by a licensee

Answer

The opinion supports the waiver advice if both statements are made together

Question 39

Which pair of facts most directly shows proper reliance for a Florida licensee’s favorable title opinion?

Accepted Answer

A licensed attorney’s opinion is current and the licensee accurately reflects its scope and conditions

Answer

The seller has possessed the property for years and the deed is recorded

Answer

The associate reviewed public records and the broker approved the conclusion

Answer

The buyer trusts the seller and plans to investigate title after closing

Question 40

Before a Florida buyer signs, an associate is asked to enter an agreed deposit, decide whether a disputed waiver is enforceable, and give a personal assurance of good title without an attorney opinion. Which plan best fits the lesson?

Accepted Answer

Enter the deposit in the appropriate form, refer the waiver question to counsel, and give the prescribed title advice without the unsupported assurance

Answer

Complete all three tasks because they concern one purchase contract

Answer

Enter the deposit and answer the legal questions after the buyer signs a consent

Answer

Decline the deposit entry but give the title assurance based on the seller’s deed