In which situation can a licensee draft an escrow agreement?

The ability of a licensee to draft an escrow agreement is impacted by regulatory guidelines and the level of authority given to them. Option C is correct because it highlights the important fact that the Department of Safety and Professional Services (DSPS) has not provided a standardized escrow agreement for licensees to utilize. As a result, without an approved template or guidelines from the DSPS, licensees are typically not permitted to draft such legal documents. This rule is essential to ensure that all parties involved in a transaction are adequately protected, and it upholds the standards set by regulatory authorities to prevent unauthorized practice of law by individuals who are not attorneys.

In the case of other options, while a licensee may be involved in the real estate transaction, the permission or request from either the buyer or seller does not negate the requirement for a standardized agreement to be drafted only under specific legal provisions. Additionally, regardless of the type of property—residential or commercial—the same regulatory standards apply to the drafting of escrow agreements.