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Trela Trec RulesLicense_requirementsMEDIUM

Broker Watson's sponsored sales agent, Ryan, is involved in a real estate transaction where the buyer asks Ryan to prepare a legal opinion about the enforceability of a deed restriction. Under TRELA, what should Ryan do?

Correct Answer

D) Ryan should refer the buyer to a licensed attorney because providing legal opinions constitutes the unauthorized practice of law

Under Texas Occupations Code §1101.654, license holders are prohibited from practicing law, which includes providing legal opinions on the enforceability of deed restrictions. Ryan must refer the buyer to a licensed attorney for legal advice.

Answer Options
A
Ryan should provide the legal opinion because deed restrictions are within the scope of a license holder's expertise
B
Ryan should provide a written disclaimer stating that his opinion is not legal advice, which protects him from liability
C
Ryan should ask Broker Watson to provide the legal opinion since brokers have expanded authority to interpret legal documents
D
Ryan should refer the buyer to a licensed attorney because providing legal opinions constitutes the unauthorized practice of law

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Related Topics & Key Terms

Key Terms:

unauthorized_practice_lawlegal_opinionreferral_to_attorneychapter_1101
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