The Massachusetts Mandatory Licensee-Consumer Relationship Disclosure

During the first meeting, every Realtor® or real estate agent you meet must provide this form.  “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 can also assist you as a facilitator.

In essence, the Commonwealth of Massachusetts real estate agency laws effective July 1, 2005 provide a higher level of consumer protection for all consumers – buyers and sellers.  These laws set higher standards of integrity for real estate professionals representing buyers and sellers and it should create more positive experiences for consumers.

Agent Fiduciary Responsibilities

As outlined in the Massachusetts Real Estate Code of Ethics for Real Estate Agents, clients should understand the responsibilities owed to them by their Realtor® / Real Estate Agent:

Undivided Loyalty
Prohibits the agent from advancing any interests adverse to the client’s interest or conducting the client’s business to benefit a customer, a sub-agent, the agent, or any other interests to the detriment of the client.

Obedience
Requires the Agent to act subject to client’s continuous control by not exceeding the scope of authority conferred by the principal and by obeying and following all lawful instructions.

Reasonable Care and Diligence
Requires the agent to protect client from foreseeable risks of harm and recommend the client obtain expert advice or assistance when a client’s needs are outside the scope of agent’s expertise.

Confidentiality
Prohibits agent from communicating personal information about the client that was given to, or acquired by, agent within the     scope of employment as an agent to the client. Personal information must be kept confidential unless the client releases the agent from this duty.

Full Disclosure
Agent is to disclose affirmatively all information concerning the transaction which might affect client’s decisions.

Accounting
Agent to promptly report to client all money & property received and paid out, and upon request, to render an accounting; and requires agent to safeguard money or property held on behalf of client.