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A
Only attorneys can ever touch contracts
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B
Licensees may typically fill in the blanks on standardized, pre-approved forms for transactions they are handling, but may NOT draft custom legal provisions or give legal advice — that constitutes the unauthorized practice of law
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C
Anyone can draft any contract
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D
Only the buyer
Why this is the answer
CONTRACT PREPARATION AND UNAUTHORIZED PRACTICE OF LAW (UPL): LICENSEES MAY: Fill in the blanks on STANDARDIZED, pre-approved contract forms for transactions they are handling (selecting and completing standard forms with transaction-specific information); LICENSEES MAY NOT: Draft custom legal clauses/provisions; give LEGAL ADVICE about the contract's legal effect; prepare complex legal documents; practice law; UNAUTHORIZED PRACTICE OF LAW (UPL): When a non-attorney performs services that legally require an attorney — drafting custom legal provisions, advising on legal rights/consequences, interpreting complex legal matters; THE LINE: Completing standard form blanks (permitted) vs creating original legal language or giving legal advice (UPL — prohibited); REFER TO ATTORNEYS: When a transaction involves unusual provisions, legal questions, or complex issues, refer clients to an attorney; ATTORNEY STATES: Some states require attorney involvement in closings; STATE-SPECIFIC: Exact boundaries vary; PURPOSE: Protects consumers from unqualified legal work; the distinction — licensees can complete standard forms but cannot draft custom legal language or give legal advice (UPL) — is important state law tested on the exam; when in doubt, refer to an attorney.
Source: Real Estate State — Contracts, Form Preparation and UPL