MGL CH. 112, § 87ZZ 1/2
"Relationships With Consumers"
Applies only to brokerage services for residential property of one to four
dwelling units or for land for use of one or two dwelling units
Nothing herein shall prohibit designated agency or transactional brokerage
so long as sections (B) through (E) are complied with.
With informed consent from either a Buyer or Seller a Broker may appoint one
or more affiliated licensees to be a designated agent to act on behalf of
buyer and/or seller (but not designated dual agents) in a potential real estate transaction.
Designated agency may only be effected if the consumer has consented, at the
commencement of the agency relationship, with the broker that the agency relationship
SHALL NOT extend to any other licensee affiliated with the broker and shall
be limited to one or more designated licensees.
Agency responsibilities to the buyer or seller, as the case may be, are solely
the responsibility of the designated agent.
Information known to the designated agent shall not be imputed to the appointing
broker or other affiliated licensees.
Designated Agents must abide by the law.
When designated agents are appointed for both the buyer and seller then the
appointing broker is deemed to be a dual agent
Appointing Broker may assist in negotiations but must remain neutral.
Appointing broker still has vicarious liability for designated agents.
Informed consent to a designated agency must include authority for the appointing
broker to serve as a dual agent and reference all the terms of Section A of
Such informed consent shall be deemed to satisfy the Common Law
Informed consent may be provided in advance of identifying a particular property
or transaction but not later than the date the P & S is signed.
Thereafter additional designated agents may be substituted or appointed without
No broker may offer sub-agency, when marketing a property for sale, without
a clear written consent (“informed consent”) from seller identifying
possible vicarious liability of seller.
A broker may offer services as a "transactional broker".
502 The Board will be promulgating new regulations and a new disclosure
503. This law becomes effective on July 1, 2005
Copyright © 2004 by Dukes Academy.