A real estate agent in Massachusetts is representing a seller of a 1958 colonial. The seller tells the agent that she has no knowledge of any lead paint in the home. The agent notices peeling paint on window sills and door frames throughout the house but says nothing to the buyer. Under Massachusetts law, which of the following best describes the agent's potential liability?
Correct Answer
B) The agent may be liable under MGL Chapter 93A for failing to disclose a material fact — visible lead paint hazard indicators — that a reasonable buyer would consider important
Under MGL Chapter 93A, real estate licensees are prohibited from engaging in unfair or deceptive acts or practices. Failing to disclose visible indicators of lead paint hazards (peeling paint on windows and door frames in a pre-1978 home) that are known to the agent constitutes a material omission. The agent's knowledge of these visible conditions creates a duty to disclose under Chapter 93A, independent of what the seller certified on the PTNC.
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