A real estate licensee hired by a property management company to lease and manage commercial properties; which action should the licensee take?

• A. Draft all leases personally
• B. Rely on standard forms with no review
• C. Notify the landlord but do nothing
• D. Seek legal counsel to write or review the leases

Answer: (D)

Leases are binding contracts with important legal and financial consequences, so a licensee handling commercial properties should not draft or modify lease terms without professional legal input. The best course is to seek legal counsel to write or review the leases to ensure they are enforceable, compliant with Washington laws, and tailored to the specific property and situation. A lawyer can address complicated provisions such as rent structure, term length, renewal options, defaults, remedies, assignment and subletting, notices, and operating expense allocations, reducing the risk of disputes or liability for both the landlord and the licensee.

Drafting all leases personally can push beyond the licensee’s scope and potentially cross into unauthorized legal practice, especially when precise contract language is needed. Relying on standard forms with no review might be better than nothing, but it still risks missing critical terms or failing to reflect current laws or the specifics of the property. Simply notifying the landlord and doing nothing fails to protect the client or the owner's interests.