Mandatory Agency Disclosure - Massachusetts In 1993, the Massachusetts Board of Registration of Real Estate Brokers and Salespersons adopted an updated acknowledgment form with the purpose of enabling consumers to make informed choices before working with a real estate licensee. The form must be provided at the first personal meeting that you have with an agent to discuss a specific property . This form gives you the opportunity to interview the real estate agents to find out who they will represent, how they will get paid for their work, and if they have any conflicts of interest (e.g., listings for which they previously agreed to work for the sellers). Keep in mind that until you know who the agents work for, it is in your best interest to keep your financial information and motivation for buying or selling confidential.
A sample of the MASSACHUSETTS BOARD OF REGISTRATION OF REAL ESTATE BROKERS AND SALESPERSON - MANDATORY AGENCY DISCLOSURE - AGENCY RELATIONSHIP form appears below. All real estate licensees you meet with to discuss properties should be discussing this form with you and explaining your choices.
MASSACHUSETTS BOARD OF REGISTRATION OF REAL ESTATE BROKERS AND SALESPERSONS
MANDATORY AGENCY DISCLOSURE - AGENCY RELATIONSHIP
The purpose of this disclosure is to enable you to make informed choices before working with a real estate licensee. It must be provided at the first personal meeting that you have with an agent to discuss a specific property. THIS IS NOT A CONTRACT. It is a disclosure notice for your information and protection. BE SURE TO READ THE DESCRIPTIONS OF THE DIFFERENT TYPES OF AGENCY REPRESENTATION ON THE OTHER SIDE OF THIS DISCLOSURE.
CONSUMER INFORMATION
1) Whether you are the buyer or the seller you can choose to have the advice, assistance and representation of your own agent. Do not assume that a broker is acting on your behalf unless you have contracted with that broker to represent you.
2) All real estate licensees must, by law, present properties honestly and accurately.
3) If you are a seller you may authorize your listing agent to cooperate with agents from other firms to help sell your property. These cooperating agents may be subagents who work for the seller or buyers' agents.
4) If you are the buyer you have the option of working with sellers' or buyers' agents. This decision will depend on the types of services you want from a real estate agent. A buyer should tell sellers' agents, including subagents, only what he/she would tell the seller directly.
CONSUMER RESPONSIBILITY
The duties of a real estate licensee do not relieve the consumer of the responsibility to protect his/her own interest. Consumers with questions on whether and how real estate agents share fees should pose them to the agent. If you need advice for legal, tax, insurance or other matters it is your responsibility to consult a professional in those areas.
TYPES OF AGENCY REPRESENTATION:
SELLER'S AGENT
When a seller engages in the services of a listing broker, that seller becomes the broker's client. This means the broker, and his/her subagents represent the seller. They owe the seller undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability. They must put the seller's interest first and negotiate for the best price and terms for their client, the seller. (the seller may also authorize subagents to represent him/her in marketing the property to buyers).
BUYER'S AGENT
When a buyer engages in the services of a broker then that broker becomes the broker's client. The broker owes the buyer undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability. They must put the buyer's interest first and negotiate for the best price and terms for their client, the buyer. (The buyer may also authorize subagents to represent him/her in locating property).
DISCLOSED DUAL AGENT
A broker can work for both the buyer and the seller on the same property provided the broker obtains the informed consent of both parties. The broker is then considered a disclosed dual agent. This broker owes the seller and the buyer a duty to deal with them fairly and honestly. In this type of agency relationship the broker does not represent either the seller of buyer exclusively and they cannot expect the broker's undivided loyalty. Also, undisclosed dual agency is illegal.
ACKNOWLEDGMENT
I have provided this disclosure form to ______________________ (print name of consumer)
I will be assisting the above named consumer as a: (check one) __ Seller's Agent __ Buyer's Agent
__________________________ _______ ___ __ 19-___
(Signature of Real Estate Agent) (License #) (Month) (Day) (Year)
I have read this agency disclosure form IN ITS ENTIRETY ON BOTH SIDES. I understand that this form is for agency disclosure AND NOT A CONTRACT. It was provided to me by the agent named above.
_______________________________________ ____ ____, 19 ___
Signature of Consumer(s) (Month) (Day) (Year)
Check Here: __ Buyer __ Seller
__ As a consumer I recognize that I need not select any agency representation at this time. Therefore, I decline to sign this disclosure. Any additional reason for declining to sign:
______________________________________________________
(PRINT NAME OF CONSUMER AND REASON, IF ANY)
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