Notes From the Legal Hotline: May 2022
Q: If I have two buyer clients interested in submitting an offer on the same property, am I a dual agent? A: No, dual agency occurs when one licensee represents both sides of the transaction. An agent may represent multiple buyers interested in the same property without entering into a dual agency relationship. Although license law does not require clients to consent or receive notice if this situation arises, the MAR Buyer Agency Agreement does include language that acknowledges that it is a possibility that the agent may represent multiple buyers submitting offers on the same property. Given the current
Notes From the Legal Hotline: April 2022
Q: There has been a lot of discussion about website accessibility lately. Is there anything that I need to do? A: Over the last several years there have been a few notable cases across the country addressing the issue of website accessibility under the Americans with Disabilities Act (ADA), but the Department of Justice (DOJ) was slow to provide specific guidance or regulation on this topic. On March 18, 2022, the DOJ published new guidance on website accessibility, offering some much-needed clarity in this arena. As the DOJ did not provide a regulation with detailed standards for accessibility, businesses will
Notes from the Legal Hotline: March 2022
Q: If I select “Designated Agency” on the Massachusetts Mandatory Licensee-Consumer Relationship Disclosure, are there any other forms I need to provide my client to establish designated agency? A: Yes, although selecting Designated Agency on the Relationship Disclosure is necessary to identify the agency capacity in which you are working, it does not establish the required consent to designated agency, nor does it provide notice that it is a designated transaction. Consent to designated agency may be established through an exclusive representation agreement, such as the MAR Exclusive Right to Sell Listing Agreement or Exclusive Buyer Agency Agreement, or through
Notes From the Legal Hotline: February 2022
Q: A salesperson in my office has set up an LLC; can I pay their commission to the LLC? A: No. A broker may only pay fees and commissions from real estate transactions to an affiliated salesperson, broker, or a business entity with a corporate broker license. Commissions may not be paid to an unlicensed LLC. To take advantage of the benefits available to corporations, the LLC, or other corporate entity, must first be licensed with the Board of Registration of Real Estate Brokers and Salespersons. Any business entity seeking a corporate broker’s license must have an officer or partner
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