Contracts
Under New York law, a real estate licensee who prepares a purchase contract (rather than an attorney) is:
AActing within their professional capacity
BPotentially engaging in the unauthorized practice of law, which is prohibited✓ Correct
CPermitted to do so if the parties consent in writing
DAllowed to prepare contracts under $500,000 only
Explanation
In New York, drafting a purchase contract for another person's transaction is considered the practice of law. Real estate licensees are prohibited from drafting contracts for clients — this is why New York is an attorney-closing state and why seller's attorneys (not brokers) prepare the purchase contract. Licensees may use standard DOS-approved forms for simple leases in some circumstances.
Related New York Contracts Questions
- Which of the following would make a real estate contract voidable?
- In New York, a 'letter of intent' (LOI) in a commercial real estate transaction:
- A New York residential purchase contract is signed but the buyer's home inspector finds major structural defects not previously disclosed. The buyer can:
- Specific performance is a legal remedy in real estate that:
- In New York, a 'binder' or 'memorandum of sale' signed before the formal contract is typically:
- In New York, a contract for the sale of real property that is not supported by adequate 'consideration' is:
- In New York, a 'counterpart' in a real estate contract means:
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