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MASSACHUSETTS MANDATORY LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE

This disclosure is provided to you, the consumer, by the real estate agent listed on this form. Make sure you read both sides of this form. The reverse side contains a more detailed description of the different types of relationships available to you. This is not a contract.

THE TIME WHEN THE LICENSEE MUST PROVIDE THIS NOTICE TO THE CONSUMER:

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 also can assist you as a facilitator.

CONSUMER INFORMATION AND RESPONSIBILITY:

Whether you are the buyer or seller you can choose to have the advice, assistance and representation of your own agent who works for you. Do not assume that a real estate agent works solely for you unless you have an agreement for that relationship. With your consent, licensees from the same firm may represent a buyer and seller in the same transaction. These agents are referred to as dual agents.

Also a buyer and seller may be represented by agents in the same real estate firm as designated agents. The "designated seller or buyer agent" is your sole representative. However where both the seller and buyer provide written consent to have a designated agent represent them then the agent making such designation becomes a "dual agent" for the buyer and seller. All real estate agents must, by law, present properties honestly and accurately. They must also disclose known material defects in the real estate.

The duties of a real estate agent do not relieve the consumers of the responsibility to protect their own interests. If you need advice for legal, tax, insurance or land survey matters it is your responsibility to consult a professional in those areas. Real Estate agents do not have a duty to perform home, lead paint or insect inspections nor do they perform septic system, wetlands or environmental evaluations.

RELATIONSHIP OF REAL ESTATE LICENSEE WITH THE CONSUMER

(check one) ___Seller's agent  Buyer's agent ___Facilitator

IF A SELLER'S OR BUYER'S AGENT IS CHECKED ABOVE COMPLETE THE SECTION BELOW:

Relationship with others affiliated with ________Buyer's Choice Realty  8375_____________

         (Print name of real estate firm or business and license number)

(Check one)

  The real estate agent listed below, the real estate firm or business listed above and all other affiliated agents have the same relationship with the consumer named herein (seller or buyer agency, not designated agency).

____Only the real estate agent listed below represents the consumer named in this form (designated seller or buyer agency). In this situation any firm or business listed above and other agents affiliated with the firm or business do not represent you and may represent another party in your real estate transaction.

By signing below I, the real estate licensee, acknowledge that this disclosure has been provided timely to the consumer named herein.

_________________________    ____________________________    _____________                ____________

(signature of real estate agent)     (Printed name of real estate agent)     (License Number/Type)    (Today's Date)

By signing below I, the consumer, acknowledge that I have received and read the information in this disclosure.

_______________________    ________________________    _____________

(Signature of consumer)           (Printed name of consumer)       (Today's Date)

_______________________    ________________________    _____________

(Signature of consumer)           (Printed name of consumer)       (Today's Date)

___Check here if the consumer declines to sign this notice.


 

TYPES OF AGENCY REPRESENTATION

SELLER'S AGENT

A seller can engage the services of a real estate agent to sell his property (called the listing agent) and the real estate agent is then the agent for the seller who becomes the agent's client. This means that the real estate agent represents the seller. The agent owes the seller undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provided, however, that the agent must disclose known material defects in the real estate. The agent must put the seller's interests first and negotiate for the best price and terms for their client, the seller. (The seller may authorize sub-agents to represent him/her in marketing its property to buyers, however the seller should be aware that wrongful action by the real estate agent or sub-agents may subject the seller to legal liability for those

wrongful actions).

BUYER'S AGENT

A buyer can engage the services of a real estate agent to purchase property and the real estate agent is then the agent for the buyer who becomes the agent's client. This means that the real estate agent represents the buyer. The agent owes the buyer undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provided, however, that the agent must disclose known material defects in the real estate. The agent must put the buyer's interests first and negotiate for the best price and terms for their client, the buyer. (The buyer may also authorize sub-agents to represent him/her in purchasing property, however the buyer should be aware that wrongful action by the real estate agent or sub-agents may subject the buyer to legal liability for those wrongful actions).

(NON-AGENT) FACILITATOR

When a real estate agent works as a facilitator that agent assists the seller and buyer in reaching an agreement but does not represent either the seller or buyer in the transaction. The facilitator and the broker with whom the facilitator is affiliated owe the seller and buyer a duty to present each property honestly and accurately by disclosing known material defects about the property and owe a duty to account for funds. Unless otherwise agreed, the facilitator has no duty to keep information received from a seller or buyer confidential. The role of facilitator applies only to the seller and buyer in the particular property transaction involving the seller and buyer. Should the seller and buyer expressly agree a facilitator relationship can be changed to become an exclusive agency relationship with either the seller or the buyer.

DESIGNATED SELLER'S AND BUYER'S AGENT

A real estate agent can be designated by another real estate agent (the appointing or designating agent) to represent either the buyer or seller, provided the buyer or seller expressly agrees to such designation. The real estate agent once so designated is then the agent for either the buyer or seller who becomes their client. The designated agent owes the buyer or seller undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provided, however, that the agent must disclose known material defects in the real estate. The agent must put their client's interests first and negotiate for the best price and terms for their client. In situations where the appointing agent designates another agent to represent the seller and an agent to represent the buyer then the appointing agent becomes a dual agent. Consequently a dual agent cannot satisfy fully the duties of loyalty, full disclosure, obedience to lawful instructions which is required of an exclusive seller or buyer agent. The dual agent does not represent either the buyer or the seller solely only your designated agent represents your  interests. The written consent for designated agency must contain the information provided for in the regulations of the Massachusetts Board of Registration of Real Estate Brokers and Salespeople (Board). A sample designated agency consent is available at the Board's website at www.mass.gov/dpl/re.

DUAL AGENT

A real estate agent may act as a dual agent representing both the seller and buyer in a transaction but only with the express and informed consent of both the seller and buyer. Written consent to dual agency must be obtained by the real estate agent prior to the execution of an offer to purchase a specific property. A dual agent shall be neutral with regard to any conflicting interest of the seller and buyer. Consequently a dual agent cannot satisfy fully the duties of loyalty, full disclosure, obedience to lawful instructions which is required of an exclusive seller or buyer agent. A dual agent does, however, still owe a duty of confidentiality of material information and accounting for funds. The written consent for dual agency must contain the information provided for in the regulations of the Massachusetts Board of Registration of Real Estate Brokers and Salespeople (Board). A sample dual agency consent is available at the Board's website at www.mass.gov/dpl/re.

 

All of the above Explained briefly below by Buyer's Choice Realty


 

 

Explanation of Consumer Licensee Relationships in Massachusetts

 

The disclosure is required by the real estate Licensing Board to make certain consumers are made aware of how real estate works in Massachusetts.  Itís merely a disclosure for consumer protection and does not obligate the consumer in any way.

 

Itís required of all licensees at the first personal meeting with a consumer to discuss a specific property. 

 

The potential relationships include Seller Agency, Buyer Agency, Facilitator or Non-Agency, Disclosed Dual Agency, and Designated Agency.  Subagency is when one firm also invites another firm to represent their client. This requires disclosure and consent.

 

In both Seller Agency and Buyer Agency the consumer is promised fiduciary level service which includes:

 

Obedience to the clientís lawful instruction.

Undivided Loyalty or placing the clientís best interest above all others.

Disclosure of everything known about the other side of the transaction.

Confidentiality for everything known about the client including finances.

Accountability to the client who is the principal or boss of the agent.

Reasonable Care and Diligence to avoid foreseeable risk.

 

Exclusive Seller Agencies and Exclusive Buyer Agencies are the only ones that can do this for their respective clients without conflict.  ESAs work only for sellers and never buyers and EBAs work only for buyers and never sellers.  Buyerís Choice is an EBA.

 

There is an inherent conflict when a real estate firm represents both sellers and buyers at the same time.  This is called Dual Agency and must be fully disclosed to both parties and requires written, informed consent. 

 

Disclosed Dual Agency requires that confidentially remains, but the agent may not advocate for one side over the other since both parties are now being represented.  This equates a reduction in service for both parties. The agent works for both and must assume a neutral role.  Fiduciary duties are minimized or eliminated because of conflict.

 

Designated Agency is a form of Dual Agency wherein the individual agent may continue to fully represent their client while the other agent fully represents the other client.  One agent is appointed or designated to represent the seller and another represents the buyer.  Because an inherent conflict exists, the appointing agent is considered a Dual Agent.

 

The non-agency option in Massachusetts is called a Facilitator who does not represent either party.  A facilitator is like a match-maker trying to bring a buyer and seller together.  Confidentiality is not required since it is a fiduciary duty owed only a client.