Why can't a broker render a title opinion that the property being sold is good or merchantable?

• A. Because it would constitute practicing law
• B. Could be considered practicing law
• C. Because it requires title examination
• D. Because it would be illegal to give any opinions

Answer: (B)

The key idea is that determining whether a property's title is marketable involves interpreting the law. A title opinion goes beyond stating facts; it analyzes chain of title, encumbrances, defects, and legal rights to conclude if the title is acceptable. That kind of legal conclusion is the practice of law, something a broker isn’t licensed to perform. A broker can explain what a title search shows and provide the factual results, but the legal determination about merchantability should come from an attorney or a qualified title professional. That nuance is why the best answer is that issuing a title opinion could be considered practicing law.