Final answer:
A licensee should never give legal advice to a client unless they are a licensed attorney. The correct action is to refer clients to a professional attorney when legal advice is needed.
Step-by-step explanation:
A licensee, such as a real estate agent or broker, should never give legal advice to a client unless they are licensed to practice law. Doing so could lead to legal repercussions for the licensee, including lawsuits for practicing law without a license, potentially resulting in fines or other penalties. It's important for licensees to know the boundaries of their expertise and when to refer clients to a professional attorney.
The correct answer to the question is C - never. When property transactions or other issues requiring legal interpretation arise, the client should be directed to seek the advice of a qualified attorney who is licensed to provide legal counsel.