Title Spc'lMust there be paym't made to the an unlicensed person writing a R.E. contract for it to be illegal?

Question

Title Specialist: Your answer was more in depth than the others I received. However, I got the impression that there had be monetary compensation paid to the unlicensed writer of a real estate contract for their action to be considered illegal. Correct or not? Thank you for your help. yougogirl

Answer 1

The business of "consideration", or compensation, tends to validate or invalidate a contract. The legality of an unlicensed writer begs the question of intent. Was there a clear attempt to decieve or defraud a party to the contract? If so, this goes beyond the scope of licensing law. This Gordian Knot is best left untied by an attorney.

Answer 2

Here goes,

For the lay person that wrote the contract to be "practicing law without a license" they must have received 'compensation' (ie: payment in some form) for doing it. That is money or some item from wich they materialy benefit. If they do it out of the goodnes of their heart, they are not breaking the law. (This is way #1 that it can be illegal)

BUT, If they said they could do as good or a better job than an attorney -OR- discouraged either party in any way from seeking the advise of an attorney instead, -OR- or did anything else that might be construed as having any intent to deceive or defraud then their action (writing the contract) could be held to be unlawful and either, or both of the parties could seek restitution in civil and/or criminal action. (This is way #2 that it can be illegal, = Fraud)

You never said what the provision that was not being addressed was, if it is a BIG DEAL then- Your best bet is to call up your local legal aid society, or if they can afford it, just go see a local attorney about it. If it is just an inconvenience then try to work it out with the other party, etc. -OR- ask the person who wrote the agreement to please intercede and help you get it straightened out. They may have more luck that the renters do in that.

Best wishes and always remember that in a contract you have to have what each party is required to do and in what time frame etc. spelled out.

No you don't have to have a lawyer to write up just about any legal document, but BEWARE that if you or another do this you may miss an item that later could be inportant to you.

Also be sure what you are signing, both parties in this chose to not seek legal counsel, they are also at fault (a court frequently finds that they are equally or more at fault than the person that wrote the contract for free.

ENJOY!!

Answer 3

My two cents: The person must receive compensation whether it is money, other benefit or anything of value or perceived value for it to be in violation of the licensing laws. Some states won't let anyone other than a lawyer to prepare any contracts so you might also fall under that category.

The other caveat is that a real estate agent, whether licensed or unlicensed shouldn't be writing a contract to begin with. If he is using a preprinted standarized form that is acceptable but I will always hand the paperwork to the client and let them fill it in therefore there is no question of who wrote it. With advice and explanation of course.

Another option that I have used in those types of situations when I couldn't help the client and they insisted on non licensed help was to have the person grant that person a specific power of attorney to handle the sale. That gives them an "ownership" interest and thus circumvents the licensing laws.