A real estate broker in Massachusetts represents a seller and fails to disclose to a buyer that the property is located within a Chapter 21E designated disposal site with known contamination. The buyer purchases the property and later incurs $120,000 in cleanup costs. The buyer files a claim under both MGL Chapter 21E and MGL Chapter 93A against the broker. The broker argues that Chapter 21E liability applies only to the 'owner or operator' of the contaminated site, not to a broker. Under Massachusetts law, which statement BEST describes the broker's potential liability?
Correct Answer
B) The broker has no liability under Chapter 21E as an 'owner or operator,' but may face Chapter 93A liability for failing to disclose known material information about the contamination, which constitutes an unfair or deceptive act.
Under Massachusetts General Laws Chapter 21E, liability for cleanup costs attaches to 'owners, operators, generators, and transporters' of hazardous materials — categories that do not include real estate brokers acting in their professional capacity. Therefore, the broker is correct that Chapter 21E direct liability does not apply. However, the broker's knowing failure to disclose material information about a known contaminated site constitutes an unfair or deceptive act under Chapter 93A. Massachusetts courts have held that real estate brokers who know of contamination and fail to disclose it can face Chapter 93A liability, including double or treble damages and attorney's fees. The broker is not immune simply because Chapter 21E does not directly apply.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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