An Overview of the Massachusetts Mandatory Licensee Consumer Relationship Disclosure

(sometimes referred to as the "Agency Disclosure" form)

prepared by The Grand Gables Team


Overview: -- This disclosure is provided to you, the consumer, by the real estate licensee listed on the form. It is in your best interest to read both sides of the form and and ask the licensee any questions that you have before signing the form.

All real estate licensees must present the form to you at the first personal meeting with you to discuss a specific property. Depending on the agency practice policy of the company which the licensee is affiliated with, the following choices may be available to you as a consumer (be sure to understand that company's policy to know if the option you are interested in is available through that company and that licensee)

Scroll down for more information and to learn about selling with Grand Gables Realty Group, click here! If you have any questions, please feel free to get in touch.

As a Consumer Buyer :
The licensee can work WITH you BUT REPRESENT the Seller as a Seller's Agent;
The licensee can work WITH you AND REPRESENT you as a Buyer's Agent; or
The licensee can work WITH you as a Facilitator AND will NOT REPRESENT either party.

As a Consumer Seller:
The licensee can work WITH you BUT REPRESENT the Buyer as a Buyer's Agent;
The licensee can work WITH you AND REPRESENT you as a Seller's Agent; or
The licensee can work WITH you as a Facilitator AND will NOT REPRESENT either party.

Here are some important points to keep in mind:

All real estate professional who practice real estate brokerage and work directly with consumers in the buying and selling of real estate are required to hold either a Real Estate Broker's or Real Estate Salesperson's License - these individuals are collectively referred to as "Licensees".

The law allows for different forms of engagement in terms of ways that consumers and licensees can work together. Each company needs to disclose to consumers working with them what forms of engagement under the law that their company has chosen to offer to consumers. Be sure to understand the policy of the company that your chosen licensee is affiliated.

Depending on a company's policy ..... When a consumer and licensee establish a relationship whereby the licensee not only WORKS DIRECTLY WITH the consumer BUT ALSO REPRESENTS that consumer, then the licensee becomes the AGENT of that consumer and takes on fiduciary responsibilities with that relationship. A licensee can WORK DIRECTLY WITH a consumer but REPRESENT the consumer on the opposite side of that transaction as an AGENT. A licensee can WORK DIRECTLY WITH a consumer but NOT REPRESENT that consumer or anyone else in that transaction as an AGENT - in this instance, the licensee would be acting as a FACILITATOR.

Whether you are the buyer or the seller, you can choose to have the advice, assistance and representation of your own agent who works for you. Do not assume that a real estate licensee works solely for you unless you have an agreement for that relationship. With consumer consent, a licensee (or team of licensees from the same firm) may REPRESENT BOTH THE BUYER AND THE SELLER in the same transaction. The licensee(s), in this instance is/are working as a DUAL AGENT. Also, with consumer consent, a buyer and a seller may be REPRESENTED by different licensees (or team of licensees) in the same firm in the same transaction. In this instance, these licensees are working as "DESIGNATED AGENTS". As a Seller, the DESIGNATED SELLER'S AGENT(s) assigned to you is/are your sole representative(s) in that firm; As a Buyer, the DESIGNATED BUYER's AGENT(s) assigned to you is/are your sole representative(s) in that firm. The licensee in that firm who assigns these licensees to work as your DESIGNATED AGENT is considered to be a DUAL AGENT for you in that transaction. The remaining licensees in the firm are NOT YOUR REPRESENTATIVES and could be assigned at some future point to represent another party in a transaction that may occur between you and another consumer.

All real estate licensees must, by law, present properties honestly and accurately, regardless of whom they represent. They must disclose known material defects in the real estate.

The duties of a real estate licensee do not relieve the consumers of the responsibility to protect their own interests. If you need advice for legal, tax, insurance or land survey matters, it is your responsibility to consult a professional in those areas. Real estate licensees do not have a duty to perform home, lead paint or insect inspections nor do they perform septic system inspections, wetlands or environmental evaluations. Again, it is the consumer's responsibility to consult a professional in those areas.

To obtain a copy of this form and to help answer your questions, please contact a member of the Grand Gables Team of licensees today!

This information is property of Grand Gables Realty Group, Inc. This information is not to be copied or used without permission from the organization.