Under what condition is a real estate licensee not engaging in the unauthorized practice of law?

A real estate licensee is not engaging in the unauthorized practice of law when using a form adopted by the commission. In Texas, real estate licensees are permitted to use standardized forms that have been approved by the Texas Real Estate Commission (TREC) without the risk of being seen as practicing law. This is because these forms are designed to comply with legal standards and provide guidance on necessary contractual elements, ensuring that the licensee operates within the legal framework established for real estate transactions.

This exception is important as it allows licensees to facilitate real estate transactions efficiently while adhering to regulatory requirements. It helps protect consumers by ensuring that the forms are legally vetted and appropriate for use in real estate dealings. In contrast, moving away from these standardized forms or engaging in activities like providing legal advice or preparing custom contracts could cross over into the unauthorized practice of law, which real estate agents are not authorized to do.