A buyer's agent is showing a residential property in Marshfield, Massachusetts to her client. The listing sheet does not mention wetlands, but the agent notices a marshy area at the rear of the lot and suspects the property may be subject to the Massachusetts Wetlands Protection Act. The buyer is interested in adding a garage in the rear yard. Which of the following actions best reflects the agent's obligations under Massachusetts law?
Correct Answer
B) Disclose the observed condition to the buyer and recommend consulting the local Conservation Commission or a wetlands specialist before making an offer
Under MGL Chapter 93A and the licensee's fiduciary and statutory duties, a Massachusetts real estate agent who observes a condition that may materially affect the value or use of a property must disclose that observation to the buyer client. The agent should inform the buyer of the potential wetlands issue and recommend appropriate due diligence, such as consulting the local Conservation Commission's wetlands maps or retaining a wetlands specialist, before making an offer. This protects the buyer's interests and fulfills the agent's duty of disclosure.
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Related Topics & Key Terms
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Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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