by Blackwell M. Brogden, Jr., Deputy Legal Counsel
The improper completion and illegal drafting and preparation of real estate instruments appears to be a recurring problem. The following discussion should help licensees avoid some of the common pitfalls:
Offers or Contracts to Purchase, Options and Lease Agreements
When a licensee acts as a broker or salesman in a real estate transaction, the rules of the Commission allow the licensee to fill in certain pre-printed forms. These forms include offers to purchase and contract, option contracts, and lease agreements. However, agents may not create or modify such forms.
Promissory Notes and Deeds
A real estate licensee may not prepare or complete promissory notes or deeds, even when the note or deed is on a pre-printed form. The preparation or completion of promissory notes and deeds for others constitutes the unauthorized practice of law, and is therefore prohibited.
Like a "bad penny" which "keeps showing up," the consequences of improper or illegal completion and drafting of real estate instruments will continue to bedevil the licensee who prepared them. These consequences may include embarrassment, confusion, financial loss, and even disciplinary action by the Real Estate Commission.