how far is reviewing contracts the unauthorized practice of law? Forum

[Anonymous User]

if you have no license, how far can you go in reviewing real estate contracts? what constitutes the "unauthorized practice of law"? is it okay to point out certain clauses and describe what they mean? can you suggest how clauses should be written? can you draft contracts?

in this position, you would not be working underneath an attorney and are just using your law knowledge from your JD degree. trying to understand where is the line that you cannot cross.

[estefanchanning]

unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

[Mobster1983]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

Sorry, but going to have to strongly disagree with you here. While it varies from state to state, the unauthorized practice of law is just what is says, a non-lawyer doing things that constitute the practice of law. Some examples include drafting contracts and giving legal advice. If the person says they are a lawyer but they are not, that may help build the case against them. It is not necessary.

I am a licensed realtor in my state and had my own company before becoming an attorney. While state laws are different, giving advice about what certain clauses mean could be considered legal advice. If you are giving a basic explaination of the meaning, that may be ok. Informing them of legal ramifications of that clause is likely crossing the line into practice of law. Suggesting how parts of a contract are written, much less writing/drafting the whole thing, is giving legal advice.

Where I am located, and a few other jurisdictions I have seen, there are form contracts for real estate. The realtors are allowed to fill in the blanks and can define basic terms to the client. Anything else, such as legal ramifications is considered practicing law, and the realtor can get in major trouble for that.

You need to be very careful about what you do, especially as a law student. Lots of people see law student and think lawyer (silly I know). I can’t tell you how many family members asked me for legal advice while I was in school. A law student doing things that are normally done only by an attorney (such as reviewing and drafting contracts) could raise major red flags, especially if a deal goes bad and a complaint is filed.

On a related note, many states also require real estate agents/brokers to be licensed. If you are giving real estate advice and are not a licensed agent or broker, you could be facing additional consequences, including criminal charges. My advice, just wait until you are licensed. If you want to work real estate (potentially a lucrative side job) then get a license. Your law classes probably allow you to waive education requirements and you just need to pass a test. Good luck.

[yost]

if you have no license, how far can you go in reviewing real estate contracts? what constitutes the "unauthorized practice of law"? is it okay to point out certain clauses and describe what they mean? can you suggest how clauses should be written? can you draft contracts?

in this position, you would not be working underneath an attorney and are just using your law knowledge from your JD degree. trying to understand where is the line that you cannot cross.

If done for the benefit of another person, all three of those things probably constitite the unauthorized practice of law. The "line" is somewhere prior to referring to particular clauses in particular contracts.

[Traynor Brah]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

this is extremely not correct

[SFSpartan]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

No. Just no. OP - drafting contracts is unauthorized practice of law. Flagging certain clauses and saying "you may want to take another look at this" probably isn't unauthorized practice of law, but opining on the legal effect of clauses and suggesting how they might be drafted more effectively almost certainly is.

[estefanchanning]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

No. Just no. OP - drafting contracts is unauthorized practice of law. Flagging certain clauses and saying "you may want to take another look at this" probably isn't unauthorized practice of law, but opining on the legal effect of clauses and suggesting how they might be drafted more effectively almost certainly is.

How am I incorrect? He can most definitely review the contract without "praciring the law." Just make it clear to his client that he's not a licensed attorney. I would also follow it you with "idk tho" to be safe.

[adil91]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

No. Just no. OP - drafting contracts is unauthorized practice of law. Flagging certain clauses and saying "you may want to take another look at this" probably isn't unauthorized practice of law, but opining on the legal effect of clauses and suggesting how they might be drafted more effectively almost certainly is.

Law clerks and Summer Associates do this all the time. Is there work not the unauthorized practice of law because they are doing so under the supervision of an attorney?

[SFSpartan]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

No. Just no. OP - drafting contracts is unauthorized practice of law. Flagging certain clauses and saying "you may want to take another look at this" probably isn't unauthorized practice of law, but opining on the legal effect of clauses and suggesting how they might be drafted more effectively almost certainly is.

How am I incorrect? He can most definitely review the contract without "praciring the law." Just make it clear to his client that he's not a licensed attorney. I would also follow it you with "idk tho" to be safe.

You're only getting one part of the definition of "unauthorized practice of law". The definition will be different in each state, but basically, unauthorized practice of law is (a) holding onesself out to be entitled to practice law when not a member of the Bar; or (b) actually practicing law while not a member of the Bar (unless under the supervision of a member of the Bar). You're right about (a) - OP won't violate that prong unless he/she holds himself/herself out as an attorney. However, I'd argue that reviewing a contract and opining on the legal effect of certain provisions thereof is practicing law, and hits (b) right on the nose.

And to answer your other question above - yes. Not sure how all firms do it, but at the firm I summered/clerked at, an attorney always had to review the work I did so that the firm didn't run into unauthorized practice issues.

[minnbills]

How am I incorrect? He can most definitely review the contract without "praciring the law." Just make it clear to his client that he's not a licensed attorney. I would also follow it you with "idk tho" to be safe.

lol wtf. Dude, you should not be commenting in this thread.

[albanach]

Law clerks and Summer Associates do this all the time. Is there work not the unauthorized practice of law because they are doing so under the supervision of an attorney?

It may vary state to state, but where I am, they should only be doing this for an attorney. If the attorney uses their work, he/she owns it.

[albanach]

Unauthorized practice of law is saying you're a licensed attorney when in fact you're not. There's no "line" to cross. If you don't say you're an attorney, review the contract until your heart's content.

That statement alone could be the unauthorized practice of law. Are you even admitted anywhere?

[Mobster1983]

How am I incorrect? He can most definitely review the contract without "praciring the law." Just make it clear to his client that he's not a licensed attorney. I would also follow it you with "idk tho" to be safe.

lol wtf. Dude, you should not be commenting in this thread.

I think he is a 1L. Someone really needs to take a PR class. Just goes to show you need to be careful who you listen to in these forums.

[estefanchanning]

How am I incorrect? He can most definitely review the contract without "praciring the law." Just make it clear to his client that he's not a licensed attorney. I would also follow it you with "idk tho" to be safe.

lol wtf. Dude, you should not be commenting in this thread.

I think he is a 1L. Someone really needs to take a PR class. Just goes to show you need to be careful who you listen to in these forums.

Lol, I was obviously joking. I thought the "idk tho" would make that clear but I guess not. Lighten up. I wouldn't be surprised if OP is trolling you guys as well.