Notes From the Legal Hotline: January 2022
Q: I just found out my buyer client bought a house with another agent. What options do I have? A: What recourse is available in these situations depends on the type of relationship between the agent and the buyer. If the buyer and agent entered into an exclusive representation agreement, and a property was purchased during the term of that agreement, or any extension thereof, a commission may be owed. The MAR Exclusive Buyer Agency Agreement states, in relevant part: The parties agree that compensation equal to ___ (insert percent of purchase price or another amount) shall be due BROKER
Notes From the Legal Hotline: December 2021
Q: I heard there is a new Mandatory Licensee-Consumer Relationship Disclosure. Is that true and when does it need to be presented? A: The Relationship Disclosure must be presented to a consumer at the first personal meeting in which specific property is discussed. Recent changes to the Mandatory Licensee-Consumer Relationship Disclosure clarify that the disclosure is only required in residential transactions, which are defined as land with a building intended for use as a one to four-unit residential dwelling or the purchase or sale of land on which a building is intended to be constructed for use as a one
Notes From the Legal Hotline: November 2021
Q: Can a landlord charge a tenant a monthly pet rent? A: Yes, according to a recent Massachusetts Appeals Court ruling in Phoebe Flemming vs. Greystar Management Services, L.P., charging a tenant a recurring, monthly rent for the ability to keep a pet in a rental property is not a violation of the security deposit statute (Massachusetts General Laws Chapter 18, Section 15B). Under the law, landlords are prohibited from collecting monies in excess of first month’s rent, last month’s rent, a security deposit not to exceed the first’s month’s rent, and a fee to change the lock and key
Notes From the Legal Hotline: October 2021
Q: What tasks may an assistant perform in a real estate office? A: The tasks that may be performed by an assistant in a real estate office are going to depend on whether the assistant is licensed or unlicensed. A licensed assistant may perform any tasks permitted of licensees in a real estate transaction, but an unlicensed assistant is much more limited in the tasks they may perform. Some examples of activities in which an unlicensed real estate assistant can engage are: General administrative tasks, such as answering the phones and sending mailers Placing signs on listed properties Scheduling appointments
Notes from the Legal Hotline: September 2021
Q: May a landlord use COVID vaccination status in screening prospective tenants? A: While vaccination status itself is not a protected class, the reason an individual is unvaccinated may be because of a protected characteristic…
Notes from the Legal Hotline: August 2021
Q: How should a REALTOR® handle a seller who wants to meet the prospective buyers before accepting an offer? A: As a real estate professional, it is the job of the REALTOR® to educate their clients on the home selling process and assist the seller in achieving the most favorable terms and conditions for the sale of their property. Determining which offer to accept should be based solely on objective criteria. A seller wanting to meet interested buyers prior to selecting an offer introduces subjective information that may lead to a Fair Housing violation. Race, color, religion, sex, handicap, familial
Notes from the Legal Hotline: July 2021
Q. I have an Exclusive Right to Sell but another Broker just listed the property in the MLS. What do I do? A: An Exclusive Right to Sell Listing Agreement is a bilateral contract between the seller of the property and the listing broker. One party may not unilaterally change the terms of the contract or “cancel” the contract. A seller who enters into a subsequent listing contract with a second brokerage is in breach of the original contract and may be obligated to compensate both listing brokers according to the terms of the contract. When approached by a prospective
Notes from the Legal Hotline: June 2021
Q. Is a broker able to associate with more than one brokerage? A. Yes, the single affiliation requirement contained within Massachusetts General Laws Chapter 112, Section 87RR speaks only to individuals licensed as salespersons. As the law is silent in this regard as to those licensed as real estate brokers, brokers may associate with multiple brokerages. Although permissible under Massachusetts laws, a broker of record may restrict associate brokers from working at another brokerage. Q. If I represent two buyers interested in submitting an offer on the same property is that dual agency? A. No, this is not considered dual
Notes from the Legal Hotline: May 2021
Q: What information am I able to provide clients when they ask a legal question? A: Due to the nature of the real estate business, REALTORS® often receive requests from clients for what amounts to legal advice. In an industry controlled by contracts, this is unsurprising. REALTORS® must walk a fine line in representing their clients’ interests without engaging in the unauthorized practice of law. You, as a REALTOR® may provide legal information, but you may not provide legal advice or draft legal documents or clauses. Article 13 of the Code of Ethics not only prohibits the unauthorized practice of
Notes from the Legal Hotline: April 2021
Q: If the MLS states that all offers are due by a specific date and time and my buyer submits an offer after that, does the listing agent need to present that offer? A: Maybe. The Massachusetts Real Estate Regulations require that a licensee submit all offers to purchase or rent real property to the owner of the property upon receipt of such offers. This obligation is not absolute, however, and may be modified through an instruction from the seller. A seller may provide their agent with instructions related to the sale of their property, including a specific time that