A Massachusetts licensed broker, Patricia, receives a written complaint from a buyer alleging that Patricia misrepresented the square footage of a property, inflating it by 20%. The Board of Registration schedules a formal hearing. Patricia argues she relied on the seller's representations and had no independent knowledge the figure was false. Under Massachusetts law and Board regulations, how does this defense affect the disciplinary outcome?
Correct Answer
B) Reliance on seller representations may mitigate the sanction but does not automatically absolve Patricia of responsibility for material misrepresentations made to buyers
Under Massachusetts license law and Chapter 93A, a licensee has an independent duty to avoid making material misrepresentations to consumers. While reliance on a seller's representations may be considered a mitigating factor, it does not constitute a complete defense. Licensees are expected to exercise reasonable care in verifying material facts, and the Board may still find a violation and impose sanctions, though potentially less severe ones.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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