Drafting of Real Estate Instruments: The Problem from the Standpoint of the Realtors

Abstract

Everyone who buys a piece of real estate or who has a piece of real estate for sale would eventually be affected by the outcome of suits which have been brought by local bar associations in the courts of a great many of the states. These suits seek to outlaw the ordinary business practice under which the real estate broker, who must be licensed by state authority in 30 of the states, draws up ordinary instruments of agreement that are an integral part of his work. These suits aim to prevent him from even filling out forms of agreement which after long study by the most able men in the business of real estate, after scrutiny by the most capable lawyers in the field of real estate law, and after wide tests in use have been adopted as standard. Brought on the ground that selecting and filling out such instruments constitutes unauthorized practice of law, the suits attempt to make it legally necessary to employ a lawyer to draw the papers involved each time at practically every step of every real estate transaction. Within the last five years such suits have been brought by the local bar associations in at least seven states. In at least six states bar associations