Contracts
A Mississippi real estate broker prepares a purchase contract. To avoid unauthorized practice of law, the broker should:
ADraft all legal terms and conditions from scratch
BUse standardized contract forms approved by attorneys or real estate associations and fill in the blanks✓ Correct
CRequire every buyer to hire an attorney before signing any contract
DRefuse to prepare any contracts and let attorneys handle all paperwork
Explanation
To avoid unauthorized practice of law, Mississippi real estate licensees should use preprinted contract forms developed by attorneys or trade associations, filling in the blanks with factual information. Complex legal issues should be referred to an attorney.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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