When should a licensee advise a client to consult an attorney?

The most suitable time for a licensee to advise a client to consult an attorney is before signing the contract if the terms are unclear. This action is essential because contracts often involve complex legal language and obligations that may significantly impact the client's rights and responsibilities. If a client does not comprehend certain terms or conditions, seeking legal counsel can help clarify these points, ensuring the client makes an informed decision before committing to the agreement.

Encouraging this precaution serves to protect the interests of the client and ensures that they fully understand what they are entering into, which is a critical part of the real estate transaction process. Additionally, it helps mitigate potential legal disputes arising from misunderstandings that could occur if the client signs a contract without fully comprehending its content.

In contrast, advising a client at first contact may be premature, as they may not yet be considering specific contractual details. Suggesting consultation after the contract has been signed would be too late to address any uncertainties or issues, and claiming that a licensee should never advise a client to consult an attorney is inconsistent with the ethical and professional standards expected in real estate practice. These standards emphasize the importance of transparency and informed decision-making, which includes encouraging clients to seek legal advice when needed.