Maria is a licensed real estate salesperson in Massachusetts. She is listing a commercial property where she has actual knowledge that the owner previously reported an underground oil storage tank leak to MassDEP under Chapter 21E. The seller instructs Maria to say nothing about the contamination to potential buyers. What is Maria's correct course of action?
Correct Answer
B) Disclose the known contamination to potential buyers, because concealing a known material fact violates MGL Chapter 93A and licensee duties.
Under MGL Chapter 93A and the licensee's duty to avoid deceptive practices, a real estate licensee who has actual knowledge of a material fact — such as a Chapter 21E oil release — must disclose that fact to potential buyers. Concealing known environmental contamination constitutes an unfair or deceptive act under Chapter 93A, exposing both the licensee and the seller to liability including double or treble damages. The fact that the release is on file with MassDEP does not eliminate the licensee's affirmative disclosure obligation.
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