Q: I heard there is a new Mandatory Licensee-Consumer Relationship Disclosure. Is that true and when does it need to be presented?
A: The Relationship Disclosure must be presented to a consumer at the first personal meeting in which specific property is discussed. Recent changes to the Mandatory Licensee-Consumer Relationship Disclosure clarify that the disclosure is only required in residential transactions, which are defined as land with a building intended for use as a one to four-unit residential dwelling or the purchase or sale of land on which a building is intended to be constructed for use as a one or two-unit residential dwelling. Additionally, the disclosure now states that, in the absence of a personal meeting with a consumer, the licensee must provide the consumer with the relationship disclosure, either electronically or otherwise, prior to the licensee entering into a contract with that consumer.
The updated disclosure may be viewed in the MassForms™ library or online here.
Q: What changes were made to the MassForms™ library in 2021?
A: Over the past year, the MAR Forms Content Advisory Committee made several important updates to the forms library. The following are new forms:
- Seller to Find Suitable Housing Addendum – provides the seller the right to terminate the contract without penalty if they are unable to locate suitable replacement housing by a date certain.
- Waiver of Inspection Rights Addendum – reiterates the buyer’s right to include a home inspection in their offer and by signing, the buyer acknowledges the risk associated with waiving an inspection and releases the broker from any claims related to a condition that may have been revealed in a home inspection.
- Sight Unseen Addendum – by signing, the buyer acknowledges that a property may be different in person than portrayed through video or photographs, and releases their broker, the seller’s broker, and the property owner from any claims arising out what would have been apparent through an in-person showing.
- Seller Instructions Regarding Buyer Letters – educates sellers about Fair Housing and discourages the consideration of personal letters from buyers. By signing, the seller instructs the REALTOR to include an instruction in the MLS that no personal letters will be presented to the seller.
- Fair Housing Considerations Regarding Buyer Letters – educates buyers about Fair Housing, discourages the use of personal letters, and informs the buyer that the REALTOR will not participate in the drafting or passing of a personal letter.
- Tenant Lead Law Notification (Spanish)
In addition to creating the above-referenced forms, the Committee also approved the following modifications to existing forms:
- Broker’s Rental Fee Disclosure – updated to specify that the form only needs to be used when a fee is sought from the prospective tenant and identifies whether a fee is still due if compensation is received from the listing broker or landlord.
- Wire Fraud Advisory – updated the language for the form to be applicable to lease transactions as well as purchases.
- Escalation Provisions in Offers – form was divided into two standalone forms: an explanation of escalation provisions, and the escalation provision itself.
- Concrete Foundation Advisory and Disclosure – updated to remove the reference to specific areas of Massachusetts.
The MAR Legal Team and the Forms Content Advisory Committee work diligently to ensure that the library of offered forms provides the greatest utility and risk protection for members in their businesses. Forms-related questions and suggestions can be sent to Catherine Taylor.
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Written by: Justin Davidson, General Counsel; Catherine Taylor, Associate Counsel; and Jonathan Schreiber, Legislative & Regulatory Counsel.
Services provided through the Massachusetts Association of REALTORS® is intended for informational purposes and does not constitute legal advice, nor does it establish an attorney-client relationship. The Massachusetts Association of REALTORS®, by providing this service, assumes no actual or implied responsibility for any improper use of responses to questions through this service. The Massachusetts Association of REALTORS® will not be legally responsible for any potential misrepresentations or errors made by providing this service. For more information regarding these topics authorized callers should contact the MAR legal hotline at 800-370-5342 or e-mail at legalhotline@marealtor.com.