Which activity is beyond the scope of a real estate license and could be considered practicing law?

• A. Drafting a lease agreement
• B. Preparing a market analysis
• C. Preparing closing statements
• D. Rendering an opinion of title

Answer: (D)

The main concept being tested is the boundary between what a real estate licensee can do and what constitutes practicing law. A licensee can facilitate real estate transactions, use standard forms, and perform routine task like drafting leases, preparing market analyses, and assembling closing statements. These activities support a transaction without giving legal opinions.

Rendering an opinion of title, however, is a legal determination about who owns the property and whether there are defects or encumbrances in the chain of title. That requires formal knowledge of property law and title examination, which is considered practicing law. Therefore, giving a title opinion falls outside the scope of a real estate license.