What is the general rule about a licensee preparing legal documents or giving legal advice?

Real estate licensees are generally permitted to fill in the blanks on standardized, state-approved or commonly used forms (such as a purchase agreement) as part of a transaction, but they must not draft custom contract provisions, prepare deeds or other legal instruments, or give legal advice — those activities constitute the unauthorized practice of law and should be referred to an attorney. The line between completing a form and practicing law can be nuanced and varies by state, but the safe rule is that licensees handle standard forms and recommend that clients consult a lawyer for legal questions or custom drafting. This boundary is a recurring state-portion topic.