1. Disclosure: to reveal or make known a statement of fact
a. Mandatory
i. Any latent or material defects if known must be disclosed
ii. "Agency Disclosure" of whom the Licensee represents
iii. Home Inspectors Facts for Consumers
iv. Lead Disclosure Package Notification and Certification
b. Optional disclosures
c. Disclosures vs. notifications
2. Chapter 93A: requires Real Estate Brokers and Salespersons to disclose to the Buyer anything that might affect the buyer’s decision to purchase the property
a. Demand Letter from Buyer/Attorney
i. 30 days before action is taken / 30 days to respond
ii. Outline specifies of complaint
iii. Parties involved
iv. Damages incurred
v. Amount of money being sought
vi. Possible triple damages, plus court costs, plus Attorney's fees if Agent found responsible
3. Reasonable Care:
a. Underwood v. Risman – 414 Mass. 96 (1993)
b. Urman v. South Boston Savings Bank – 424 Mass. 165 (1998)
c. DeWolfe v. Hingham Centre Real Estate – 464 Mass. 795 (2013) SJC 11168
d. Quinlan v. Clasby – 71 Mass.App.Ct 97, 879 N.E. 2d 703 (Mass. App. 2008) e. Piers v. Wheeler – 8 Mass L. Rep 410 (Mass. Super.) 1998
4. Possible Disclosure Issues:
a. Easements: recorded/unrecorded
b. Zoning
c. Sex Offenders
d. Flood Plain Zone/Insurance
e. Environmental Issues
i. Mold
ii. Radon
iii. Title 5
iv. Asbestos
v. Lead Paint
vi. Solar Panels
vii. Hazardous materials (i.e. 21E status, underground storage tanks, superfund site, soil contamination and DEP)
viii. Wetlands ix. Available public website
f. Prior Home Inspections
g. Stigmatized Property
i. Chapter 294 of the Acts of 1998
h. Title Insurance
i. Cases:
1. Ibanez v. US Bank National – 458 Mass. 637 (2011) SJC 10694
2. Eaton v. Fannie Mae – 462 Mass. 569 (2012) SJC 11041
3. Bevilacqua v. Rodriguez – 460 Mass. 762, 955 N.E.2d 884 SJC 10880
ii. Insurable Title/Marketable title
i. Prior Offers
j. Prior Physical Damage to Property
i. Fire
ii. Flood Suggested Handouts: Relationship Disclosure Form Home Inspector Facts for Consumers