Contracts
In Texas, a real estate agent who drafts contract language not found in TREC promulgated forms is:
AEncouraged to customize contracts for each transaction
BPotentially engaging in the unauthorized practice of law✓ Correct
CRequired to file the language with TREC for approval
DPermitted as long as the broker approves
Explanation
Texas courts have held that drafting unique contract language (not using TREC promulgated forms or approved addenda) may constitute the unauthorized practice of law. Licensees should use promulgated forms and direct clients to attorneys for non-standard provisions.
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