Question 1

What constitutes UPL in real estate transactions?

Accepted Answer

UPL in RE: drafting or modifying contract language (anything beyond filling in blanks on pre-approved forms), giving legal advice about title issues (advising a buyer about the legal significance of a title defect), interpreting contract provisions (explaining the legal meaning of a specific clause), advising on closing documents (explaining the legal effect of the deed, mortgage, or closing statement), and conducting closings without attorney supervision (in FL: real estate closings involve the practice of law; a non-attorney cannot conduct a closing without attorney oversight). The boundary: is between factual information (permitted) and legal advice (prohibited).

Question 2

What can real estate agents do in Florida without committing UPL?

Accepted Answer

Permitted: fill in blanks on FAR/BAR pre-approved forms (the agent selects the appropriate form and fills in: property description, price, closing date, and inspection periods), present offers and counteroffers, explain the general process (the agent can describe the steps in a real estate transaction), provide market information (comparable sales, market conditions, and property features), and recommend professionals (attorneys, inspectors, and lenders). The key: the agent provides factual information and process guidance; they do not interpret, advise, or draft legal documents.

Question 3

Why is attorney involvement important in Florida real estate?

Accepted Answer

Attorney importance: FL is an attorney-closing state (the FL Supreme Court has determined that real estate closings involve the practice of law), title examination (only attorneys can issue title opinions; title companies employ or contract with attorneys for examinations), document review (the attorney reviews: the contract, title commitment, survey, and closing documents to identify legal issues), negotiation (the attorney negotiates: contract terms, title objections, and closing issues on behalf of the client), and protection (the attorney’s duty is to their client: unlike the title company (which serves both parties) or the real estate agent (whose commission depends on closing)).

Unauthorized Practice of Law: Law Real Estate

UPL in Real Estate Transactions

What’s UPL in RE

Agent Permitted

Attorney Role

Related Terms

Barnes Walker Real Estate

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