Dukes Academy - Massachusetts Real Estate School

The best Massachusetts real estate school.
Dukes Academy offers extensive on-line education
to licensees in every city or town in Massachusetts.
   

 

Real Estate Broker Alerts

Broker Alert #2:

Analysis of

MGL CH. 112, § 87ZZ 1/2

"Relationships With Consumers"

Section 501

Section A:

1.         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

2          Nothing herein shall prohibit designated agency or transactional brokerage so long as sections (B) through (E) are complied with.

Section B:

1.         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.

2.         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.

3.         Agency responsibilities to the buyer or seller, as the case may be, are solely the responsibility of the designated agent.

4.         Information known to the designated agent shall not be imputed to the appointing broker or other affiliated licensees.

5.         Designated Agents must abide by the law.

6.         When designated agents are appointed for both the buyer and seller then the appointing broker is deemed to be a dual agent

7.         Appointing Broker may assist in negotiations but must remain neutral.

8.         Appointing broker still has vicarious liability for designated agents.

Section C.

1.         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 this law.

2.         Such informed consent shall be deemed to satisfy the Common Law

3.         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 further consent.

Section D

1.         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.

Section E.

1.         A broker may offer services as a "transactional broker".

Section 502 The Board will be promulgating new regulations and a new disclosure form.

Section 503. This law becomes effective on July 1, 2005

Copyright © 2004 by Dukes Academy.




 

DUKESACADEMY.COM - Copyright © 2017 Dukes Academy, All Rights Reserved

Site Design & Development by METAFACE