A Massachusetts listing broker represents seller Chen in the sale of a commercial property in Worcester. The buyer's broker, acting as a buyer's agent, discovers that the listing broker knowingly misrepresented the property's zoning classification to the buyer, causing the buyer to overpay by $80,000. The buyer files a Chapter 93A claim against the listing broker. The listing broker argues that Chapter 93A does not apply because the transaction involved commercial — not residential — real estate. Under Massachusetts law, is this argument correct?
Correct Answer
C) No, because Chapter 93A applies broadly to unfair or deceptive acts in trade or commerce, which includes commercial real estate transactions.
Massachusetts General Laws Chapter 93A applies broadly to unfair or deceptive acts or practices in the conduct of any trade or commerce. Massachusetts courts have consistently held that Chapter 93A applies to commercial real estate transactions, not just residential ones. A real estate broker's knowing misrepresentation of a property's zoning classification is an unfair or deceptive act regardless of whether the property is residential or commercial. The listing broker's argument that Chapter 93A is limited to residential transactions is incorrect under Massachusetts law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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