MA Mandatory Licensee-Consumer Relationship Disclosure
“All real estate licensees must present this form to you at the first personal meeting with you to discuss a specific property. The licensee can represent you as the seller (Seller’s Agent) or represent you as the buyer (Buyer’s Agent) and can also assist you as a Facilitator.”
The purpose of this form is to disclose the agent’s relationship with you or any other party to the transaction (buyer or seller). The form also includes explanations of the different types of agency relationships.
The Commonwealth of Massachusetts real estate laws effective July 1, 2005 provide stronger consumer protection and set higher standards for integrity from all real estate professionals when representing home buyers and sellers.
Home Buyers Beware:
If you do not receive the MA Mandatory Relationship Disclosure during the very first discussion or meeting with a real estate agent; consider working with an agent who abides by the law. If they bypass this law which is in place to protect you; what other laws will they ignore? The consumer protection provided by this disclosure from the Commonwealth of Massachusetts are for your protection.
Before you share information with any Agent about your need, motivation, time line, and/or financial concerns … be sure you understand whether or not that agent is working only in your best interests. This information may affect your bargaining position when negotiating a deal.
Types of Agency Relationships
The following describe the types of Agency relationships in Massachusetts:
- Listing Agent: Agent representing the Seller in marketing and sale of real estate. Listing Agent and Seller sign a “Listing Agreement” to formalize working relationship.
- Sub-Agent: Any Agent other than Listing Agent who shows property to prospective buyers but not working as a Buyer’s Agent. A Sub-Agent represents the Seller; not the Buyer, and can pose a risk called “vicarious liability” to the Seller.
- Buyer’s Agent: Agent represents best interests of the Buyer; not the Seller, and helps Buyer perform due diligence. Buyer Agent is held accountable for any and all statements they make about a specific property or its condition.
- Facilitator: Agent facilitates property showings and provides paperwork during transaction but cannot advise or coach buyer on price or negotiations.
It is against the law for a real estate agent to interpret law and/or provide any type of legal counsel to Clients unless they are in fact an Attorney of Law.
Consult with your Real Estate Attorney at any time to review any questions or concerns you have pertaining to your legal liability, exposure to risk and/or the financial consequences.
As your advocate, I will always identify matters in which I believe your Attorney should be consulted to protect your best interests.
Agent Fiduciary Responsibilities
The following fiduciary responsibilities are to be provided from the Agent who is representing you:
Agent is prohibited from advancing any interests adverse to the client’s interest or conducting the client’s business to benefit a customer, a sub-agent, the agent, or any other interests to the detriment of the client.
Agent is required to act subject to client’s continuous control by not exceeding the scope of authority conferred by the principal, and by obeying and following all lawful instructions.
Reasonable Care and Diligence
Agent is required to protect client from foreseeable risks of harm and recommend the client obtain expert advice or assistance when a client’s needs are outside the scope of agent’s expertise.
Agent is prohibited from communicating personal information about the client that was given to, or acquired by, agent within the scope of employment as an agent to the client. Personal information must be kept confidential unless the client releases the agent from this duty.
Agent is to disclose affirmatively all information concerning the transaction which might affect client’s decisions.
Agent is to promptly report to client all money & property received and paid out, and upon request, to render an accounting; and requires agent to safeguard money or property held on behalf of client.
Contact me today to schedule a Home Buyer Consultation when you are ready to purchase a new home.
We can meet in person or virtually from the comfort of your home or office. I will review your rights as a home buyer in Massachusetts in far greater detail.
About Tamela Massachusetts Real Estate License #9041852