12.20 Unauthorized Practice of Law

• Library: Real Estate Practice Deskbook (2019 Ed.)

B. (§12.20) Unauthorized Practice of Law

Brokers and their affiliated licensees must be careful not to provide legal advice. Because of the inherently legal nature of most aspects of the real estate transaction, this is a difficult prohibition. Under Missouri law, licensees are authorized to use forms that are approved by legal counsel for their brokers or legal counsel for trade associations that provide the forms. 20 C.S.R. 2250-8.140. Forms include, but are not limited to, brokerage service agreements (e.g., listing agreements, buyer's agency agreements, transaction broker agreements, property management agreements), real estate purchase and sale agreements, leases, and related documents. Forms are available for both commercial and residential transactions and are used widely as an alternative to engaging attorneys. While licensees are admonished to limit the use of forms to "filling in the blanks," it is very common to see language added by licensees that has substantive legal consequence. Attorneys should warn their licensee clients to take care to understand when engaging an attorney is advisable. Additionally, a...