Sandra is a licensed real estate broker in Massachusetts representing the seller of a residential property. She learns that a neighboring property — not the listing itself — has an active Chapter 21E release site where petroleum contamination has been detected in the groundwater. Sandra's listing property uses a private well for drinking water. What is Sandra's most appropriate action regarding this information?
Correct Answer
A) Disclose the neighboring contamination to prospective buyers, because it is a known material fact that could affect the property's value and habitability.
Under MGL Chapter 93A and the licensee's duty to disclose known material facts, Sandra must disclose the neighboring Chapter 21E contamination to prospective buyers. Because the listing property uses a private well and groundwater contamination has been detected on an adjacent parcel, this is a known condition that could materially affect the property's value, safety, and habitability. The duty to disclose known material facts extends to off-site conditions that could directly impact the subject property. Concealing this information would constitute an unfair or deceptive act under Chapter 93A.
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