What is a consequence of a licensee advising on the legal sufficiency of an instrument without being an attorney?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

A licensee who advises on the legal sufficiency of an instrument without holding the proper credentials, such as a law degree, risks suspension or revocation of their license. In Texas, real estate licenses are governed by specific laws and regulations that prohibit individuals without legal qualifications from providing legal advice or interpreting the law. Engaging in this type of unauthorized practice of law compromises both the integrity of the profession and the interests of the clients.

By advising on legal matters, the licensee steps outside their authorized scope of practice, which can lead to disciplinary actions from the regulatory body overseeing real estate professionals. These consequences are enforced to protect the public from advice that could be misleading or incorrect due to the lack of proper legal training. Therefore, the most appropriate answer is that such actions could result in the suspension or revocation of the license.

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