Sandra is a Massachusetts licensee who listed a property for seller Frank. A buyer, Tom, submits an offer through Sandra without signing a buyer agency agreement. During negotiations, Tom tells Sandra he has already sold his home and must close within 45 days or lose his moving arrangements. Sandra does not have a buyer agency agreement with Tom. Under Massachusetts agency law, which of the following correctly describes Sandra's obligations?
Correct Answer
D) Sandra must disclose Tom's time constraint to Frank because she is Frank's agent and owes him full fiduciary duties.
Sandra is Frank's seller's agent, and Tom is a customer — not Sandra's client. Under 254 CMR 3.00 and Massachusetts agency law, Sandra owes Tom honesty and fair dealing but does not owe him fiduciary duties. Tom's urgency regarding his 45-day timeline is material information that could affect Frank's negotiating position, and Sandra's duty of loyalty and full disclosure to Frank requires her to share this information. A seller's agent must disclose all material facts that benefit the seller client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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