Rachel is a Massachusetts buyer's agent for client Ben. After months of searching, Ben finds a home and signs a purchase and sale agreement. The transaction closes successfully. Two weeks after closing, Rachel learns that the property had a history of oil contamination under MGL Chapter 21E that neither the seller nor the listing agent disclosed. Ben was never informed. Under Massachusetts law, which of the following statements is most accurate?
Correct Answer
A) The listing agent and seller may face liability under MGL Chapter 21E and Chapter 93A for failing to disclose the contamination.
Under MGL Chapter 21E, sellers and their agents have obligations related to known oil and hazardous material contamination. Known contamination is a material fact that must be disclosed. The listing agent and seller who knowingly failed to disclose the contamination may face liability under both MGL Chapter 21E (environmental liability) and MGL Chapter 93A (unfair and deceptive practices), which allows for double or treble damages and attorney's fees.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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