Without doubt, Realtors and Brokers provide invaluable services to buyers and sellers of real estate. Realtors and Brokers must know everything and anything there is to know about the subject property and have an understanding of laws regarding zoning, their fiduciary duties to their clients, why clear title is so important, and much more in order to provide the best service possible to their clients. However, at no time is a Realtor and/or Broker allowed to practice law without a license.
While it may be very tempting for a Realtor to opine to a legal issue raised by the client, by doing so the Realtor could be subjecting themselves to potential liability should the information they provide to the client be inaccurate. Practicing law here in Florida is defined by Florida statute and involves giving advice that needs legal knowledge by someone licensed to practice law by the State of Florida.
For example, a Realtor should never opine on title to real property. In fact, the Florida Legislature specifically provides that no one with a Florida real estate license is allowed to give any opinion on the title to real estate. However, they can obtain a legal opinion on title from a Florida real estate lawyer and then pass that legal opinion on to the client.
By far and away the most common issue we see is additional terms and/or modifications being made to the FARBAR Contract. While this form can be used by Realtors, the Realtor should only fill in the blanks on the form and should not modify and/or otherwise amend the form. By modifying and/or amending the FARBAR Contract the Realtor could potentially be engaging in the unauthorized practice of law.
For example, if the modification and/or addendum later results in the contract being unenforceable or the client not getting what the bargained for, the Realtor and Brokerage could be held legally liable for the damages resulting from the end result.
When posed with a legal question or asked to make specific modifications to the contract, we urge you to consult with your local real estate attorney prior to doing so.
* the FR/BAR Residential Contract For Sale and Purchase, and the “AS IS” Residential Contract For Sale and Purchase (approved by The Florida Realtors and The Florida Bar)
Sincerely,
Berlin Patten Ebling, PLLC
Article Authored by Will McComb, Esq. wmccomb@berlinpatten.com
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
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