What must occur before you can assist a friend in preparing real estate documents?

The requirement to execute a listing agreement before assisting a friend in preparing real estate documents is crucial in the context of real estate transactions. A listing agreement outlines the terms under which a real estate agent is authorized to represent a seller in the sale of a property. This agreement not only formalizes the relationship between the agent and the client but also establishes the agent's obligations, rights, and any potential commissions involved.

In many states, including Colorado, assisting in the preparation of real estate documents is often considered a form of real estate activity that typically requires a license. Without a proper listing agreement in place, one could be engaging in unauthorized practice or providing legal services that might require an attorney's oversight. It’s important to adhere to regulations concerning real estate practice and documentation to ensure that both the friend and the person assisting are protected legally.

Other options, while potentially relevant in different contexts, do not specifically relate to the foundational requirement of having a listing agreement before engaging in the preparation of real estate documents. For example, charging a fee or consulting with a licensed attorney may apply in various situations but these do not directly precede the act of assisting a friend with real estate documentation and can vary significantly based on the specifics of the situation and jurisdiction. Being licensed as