Massachusetts Agency Disclosure

Below is exactly what the Massachusetts mandatory agency disclosure form is comprised of except the acknowledgement section where you just sign that you have been provided the form.  There is also an area that the agent should fill out if for whatever reason the consumer declines to sign the form.  If you are not provided this form at your first meeting with a real estate professional then you should find a different one. 

The purpose of the Massachusetts mandatory agency disclosure  is to enable you 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.  It is not a contract.  It is a disclosure notice for your information and protection. 

CONSUMER INFORMATION

  • 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. 
  • All real estate licensees must, by law, present properties honestly and accurately.
  • 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. 
  • If you are the buyer you have the option of working for 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 interests.  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

SELLERS AGENT

When the seller engages the services of a listing broker, that seller becomes the brokers client.  This means the broker, and its subagents represent the seller.  They owe the seller undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability.  They must put the sellers 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 its property to buyers.)

BUYERS AGENT

When a buyer engages the services of a broker, then that buyer becomes the brokers client.  This means the broker represents the buyer.  They owe the buyer undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability.  They must put the buyers 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 AGENCY

A broker can work for both the buyer and the seller on the same property provided such 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 or buyer exclusively, and they cannot expect the brokers undivided loyalty.  Also, undisclosed dual agency is illegal.