A Utah real estate agent is asked to prepare a contract addendum modifying the purchase price. The agent writes several new legal clauses not found in standard forms. Has the agent violated Utah law?
Correct Answer
B) Yes, drafting custom legal clauses constitutes the unauthorized practice of law
Utah licensees are permitted to fill in blanks on approved standard forms but may not draft custom legal clauses or contract language. Doing so constitutes the unauthorized practice of law. Agents should refer clients to an attorney for custom legal provisions.
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Related Topics & Key Terms
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Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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