A Massachusetts listing agent, Janet, discovers during a showing that the basement of her seller client's property has evidence of water intrusion that the seller did not mention. A buyer's offer is pending. Under Massachusetts law, including MGL Chapter 93A, what is Janet's primary obligation regarding this discovery?
Correct Answer
A) Janet must disclose the water intrusion to the buyer because it is a known material defect.
Although Massachusetts generally follows a caveat emptor (buyer beware) approach for property condition, licensees are still required under MGL Chapter 93A and their professional duties to disclose known material defects to buyers. A known water intrusion problem is a material defect that could significantly affect the property's value and the buyer's decision. Failing to disclose it would constitute an unfair or deceptive act under Chapter 93A, exposing Janet to liability including double or treble damages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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