A buyer in Boston, Massachusetts signs a written offer to purchase a property for $850,000 and submits it to the listing agent. The listing agent, who is also a licensed broker, decides the offer is too low and never presents it to the seller, instead telling the buyer that the seller rejected the offer. The buyer later discovers the offer was never presented. Under Massachusetts law, which of the following best describes the potential consequences for the listing broker?
Correct Answer
A) The broker faces civil liability under MGL Chapter 93A and potential disciplinary action by BORREBS, including license suspension or revocation
Failing to present a written offer to the seller is a serious violation in Massachusetts. Under MGL Chapter 112 and BORREBS regulations, a listing broker has a fiduciary duty to the seller that includes presenting all written offers promptly. Additionally, deceiving the buyer by falsely claiming the seller rejected the offer constitutes an unfair or deceptive act under MGL Chapter 93A. The broker faces both regulatory consequences (BORREBS disciplinary action including license suspension or revocation) and civil liability to the buyer under Chapter 93A.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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