In which situation should a licensee encourage a seller to seek legal advice?

Encouraging a seller to seek legal advice when adding a custom clause to a contract is crucial because custom clauses can significantly alter the terms and implications of the agreement. These clauses may introduce specific stipulations that could have legal ramifications which are not typically addressed in standard contract language. A licensee, while knowledgeable about real estate transactions, is not a licensed attorney and cannot provide legal counsel. By advising the seller to consult with a legal professional, the licensee ensures that the seller fully understands the potential risks and obligations arising from the custom clause. This practice encourages informed decision-making and protects both the seller's interests and the licensee's professional integrity.

In contrast, negotiating an offer, providing property disclosures, or determining appropriate pricing are areas where a licensee operates within their scope of practice and expertise without requiring direct legal guidance for the client. While these activities involve significant responsibilities, they do not carry the same level of legal complexity as modifying contract provisions with custom clauses, thus minimizing the need for legal counsel in those scenarios.