Notes from the Legal Hotline: November 2024
Q: How should I advise my clients to address the addition of “the purchase is contingent upon the execution of a mutually agreeable Purchase and Sales Agreement” in additional provisions of an offer? A: There is no one size fits all or standard office policy/procedure to address this addition as any additional provisions will need to be analyzed on a transactional basis. The Contract to Purchase already provides that “time is of the essence as to each provision” and paragraph 4 addresses the subsequent signing of the Purchase and Sale Agreement: 4. Purchase and Sale Agreement. The SELLER and the
Notes from the Legal Hotline: October 2024
Q: Do I have to hold the buyer’s deposits in my escrow account? What if I do not want to pay the buyer’s broker or the seller is paying the buyer broker directly? A: As a licensed broker in Massachusetts, you are authorized to hold client funds for a real estate transaction in escrow, which means you serve as a neutral third party, holding the deposited funds pursuant to the terms of the agreement, written instructions of the parties, or court order. However, you are not obligated to serve as an escrow agent. If your brokerage policy is to not
Notes from the Legal Hotline: September 2024
Q: The Listing Broker is offering compensation to the Buyer Broker, does the Buyer memorialize that compensation offer in their Contract to Purchase, paragraph 2? A: Memorialization of this type of cooperative compensation offer belongs on MAR Form 311: Cooperating Compensation Agreement (or its equivalent). If the Listing Broker will be paying the Buyer’s Broker less than what is on the underlying fee agreement between the Buyer and the Buyer’s Broker, the Buyer may elect to ask the Seller to pay the difference utilizing paragraph 2 of MAR’s Contract to Purchase. Conversely, if there is no offer of cooperative compensation
Notes from the Legal Hotline: August 2024
Q: The Listing Broker is asking for a copy of my Buyer Agreement with my client, am I required to share it? A: No. Buyer agreements contain private information and business practices, similar to listing agreements. They are not meant to be enforced by other members in the field. The existence of a buyer agreement does not change the terms of compensation offered in the listing agreement or the purchase contracts between the buyer and seller. If there is a discrepancy between what was agreed to on an underlying fee agreement and what services were provided or compensation paid, that
Notes From the Legal Hotline: July 2024
Q: How and when will MAR be updating forms to comply with the practice changes proposed in the National Association of REALTORS® Settlement?
Notes From the Legal Hotline: June 2024
Q: Can a landlord refuse emergency or temporary housing assistance payments? Can a landlord deny those tenants because the housing program requires a vacant unit for inspection, and this costs the landlord money?
Notes From the Legal Hotline: May 2024
Q: I have heard that the NAR settlement received preliminary approval and the opt-in period has begun. What does it mean to be covered by the settlement and do I need to do anything as a member of MAR?
Notes From the Legal Hotline: April 2024
Q: What do REALTORS® need to know about Fair Housing? A: Everything! REALTORS® play a pivotal role in ensuring fair housing compliance throughout a transaction. When working with buyers, not only should REALTORS® ensure that equal access to available properties is provided, but also that prospective buyers are not directed towards or away from certain neighborhoods based on demographics. Do not make assumptions about where a prospective buyer might like to live; buyers should be provided the opportunity to make that determination on their own terms. Your job as their REALTOR® is to be a resource to aid the buyer
Notes From the Legal Hotline: March 2024
Q: What disclosures are required in Massachusetts? A: Massachusetts real estate transactions are generally ruled by the principle of caveat emptor, or buyer beware. Massachusetts home sellers are only required to inform prospective purchases of whether the property is serviced by a septic system (Title 5) and, for properties built prior to 1978, sellers must provide a Property Transfer Lead Paint Notification & Certification. Further, any information provided by a seller, such as on the Seller Statement of Property Condition or in response to direct questions from a buyer, must be accurate. Real Estate licensees, however, have a heightened disclosure
Notes from the Legal Hotline: February 2024
Q: Can commissions be paid to an LLC? A: Whether commissions can be paid to an LLC depends on how the LLC is established and by whom. First and foremost, Massachusetts real estate licensing laws prohibit the sharing of fees, commissions, or other valuable consideration with an unlicensed individual. This restriction extends to corporate entities, such as LLCs, which must be validly licensed. For a corporation to become licensed, Massachusetts General Laws Chapter 112, Section 87UU mandates that a partner or officer of the corporation hold an individual broker’s license. This means that the corporate entity must have its own