You may be tempted to ask AI to quickly draft a form or contract for your client’s transaction. Maybe you’re in a rush, or perhaps your client wants a form that covers an unusual situation that isn’t addressed in Texas Real Estate Commission or Texas REALTORS® forms.
You’re courting trouble if you create and use AI-generated forms for your clients’ transactions. Here’s why.
It’s Risky
Even if you could use those forms (spoiler alert: it’s against the law), there’s no guarantee that what you’re getting is attorney-approved the way Texas REALTORS® and TREC forms are. Which means they could contain errors or unenforceable clauses that put you and your clients at risk of a lawsuit or worse.
It’s Probably Unnecessary
As a member of Texas REALTORS®, you have exclusive access to more than 150 forms for a wide variety of transactions and circumstances. They’re available now, without a prompt, at texasrealestate.com and through several form vendors.
It’s Not Allowed
If you’re still tempted by AI-generated forms for your clients’ transactions, know this: Using AI in this way would constitute the unauthorized practice of law and thus would violate The Real Estate License Act and other TREC rules.
Instead of trying to save time by asking AI, save yourself future hassles by taking advantage of the approved, standardized, and easily-available forms from Texas REALTORS® and TREC.
Check AI’s Work with Approved Forms
If you use AI to fill out approved forms, remember to double check the finished product before using it. You’re responsible for what it generates, especially when it comes to forms.
Brokers Could Use AI to Draft Certain Forms
The law prohibits agents from drafting forms for use in client transactions. But what about documents that aren’t specifically transaction-related?
Brokers are not prohibited from drafting agreements they are a party to, such as a listing agreement. However, while a broker could use AI to create that agreement, as stated above, AI-generated documents come with risks and should be checked carefully before being used. Brokers should consider using the attorney-approved Texas REALTORS® forms available to them as members or hiring an attorney.