I. SPECIFIC DISCLOSURES:
A. Agency Disclosure
- first personal meeting between a broker or salesperson and a prospective purchaser or seller for the purpose of discussing a specific property.
- Describe agency relationships
- Consumer signs or note refusal to sign
- Name of licensee, license number and date of disclosure
- Not a Contract
- Disclosed Dual Agency requires informed consent
- Record Maintenance
B. Apartment Rentals.
- first personal meeting between the broker and salesperson and a prospective tenant.
- state whether ether the prospective tenant will pay any fee for services
- the amount of the fee
- manner and time which the fee is due
- whether or not a fee will be payable whether or not a tenancy is created
- be signed by the broker or salesperson including license number and date of notice
- be signed by the prospective tenant, or note if and why they refused to sign
- Record Retention
D. Sex Offender Registry
E. Personal Relationships (family)
II GENERAL DISCLOSURE:
A Chapter 93A: The Consumer Protection Statute
- History of Caveat Emptor and Consumer Protection
- Persons subject to the Statute
- Persons not subject to Statute
- Mechanics and Procedures
- Attorney General Consumer Protection Regulations
B. Unfair and Deceptive Trade Practices
C. Disclosure Requirements
D. Statutes and Case Law
- Underwood v. Risman 414 Mass 96 (1993) Supreme Judicial Court
- Urman v. South Boston Savings Bank 424 Mass 165 (1997):
- The Stigmatized Property Bill has been enacted as: Chapter 294 of Acts of 1998AN ACT FURTHER REGULATING THE DISCLOSURE OF CERTAIN INFORMATION IN REAL ESTATE TRANSACTIONS
III HANDLING MONEY:
A. Client Funds
- Escrow Accounts
- Interest (or non-interest bearing accounts) defined in contract
- belongs to parties
- "follows the money"
- immediately upon pendency of a transaction
- written acceptance of offer to purchase or rent
- Bookkeeping Requirements
IV DEPOSITS AT INCEPTION OF TENANCIES
- First Months Rent
- Last Months Rent
- Security Deposit
- Condition Statement
- Remains property of tenant
- Lock/Key Deposit
E. Illegal Deposits are anything more than stated above regardless of what they are called: Cleaning Deposit, Pet Deposit, etc.
V. LICENSE REQUIREMENTS:
- Sole Proprietorship
- Corporations, LLC, LLPs, Partnerships
- Bonding Requirements
- No Dual Licensure
- Gifts and Inducements
- Authority of Board of Registration of Real Estate Brokers and Salesmen
- Truthful/not false or misleading
- Broker must Self Identify/Nor Blind Advertisements
D. Active /Inactive License Status
- Continuing Education Requirement.
- Inactive licensees - may not be actively involved in a real estate transaction. The statute only allows payment of referral fees to an inactive licensee for the act of referring a name - no other activity is permitted.
- Listing Agreements and the Anti-Trust Laws
- Net Listings are illegal
- Fair Housing Basics
- Illegal Conduct/Reporting Convictions
Important Cases for Discussion:
- Tristram's Landing Inc. v. Waite, 367 Mass. 622 (1975)
- Underwood v. Risman 414 Mass. 96 (1993)
- Urman v. South Boston Savings Bank 424 Mass. 165 (1997)
- Kelly v. Marx 428 Mass. 877 (1999)
- McCarthy v. Tobin, 429 Mass. 84 (1999)
The Real Estate Desk Book, A Broker's Guide to Consumer Protection, Procuring Cause and Commissions, Philip S. Lapatin, Esq., Greater Boston Real Estate Board
The Standard Forms Guide, Philip S. Lapatin, Esq., Greater Boston Real Estate Board
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