Notes From the Legal Hotline: November 2023

November 7, 2023

- By The MAR Legal Team

Q: May a buyer’s agent advertise a listed property of another brokerage? A: Permission should always be obtained prior to advertising the listing of another brokerage, even if you are a cooperating buyer’s agent. Advertising a listing that is not yours, regardless of your participation in the transaction, could result in a Code of Ethics, MLS, copyright, and/or licensing complaint being filed against you. Once a transaction closes, however, Article 12 of the Code of Ethics, does permit a cooperating broker who participated in the transaction to claim to have “sold” the property, including placing a sold sign on the property with the consent of the buyer. Cooperating brokers, however, must still refrain from using listing photographs without the consent of the listing broker. Q: Can a landlord ask a prospective tenant if they need a de-leaded apartment? A: No,…

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What does the Burnett v. NAR et al. Verdict mean for Massachusetts REALTORS®?

November 2, 2023

- By The MAR Legal Team

On October 31 the jury in the Burnett v. NAR et al, class action lawsuit reached its verdict, finding that NAR and the co-defendants participated in a conspiracy to enforce the cooperative compensation rule ultimately leading sellers to pay more than they would have otherwise. The jury awarded $1.785 billion in damages to the Plaintiff class, which by law will be automatically trebled to roughly $5.4 billion. NAR President Kasper recently released the following statement on the verdict. It is important to understand that NAR plans to appeal and this case still has a long way to go before it is resolved. What does the verdict mean for REALTORS® in Massachusetts? The verdict doesn’t require that REALTORS® do anything differently. However, it does provide an opportunity to stress the value and importance of using an exclusive buyer agency agreement. These…

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Notes From the Legal Hotline: October 2023

October 5, 2023

- By The MAR Legal Team

Q: Must a REALTOR® affirmatively disclose whether a listed property is haunted? A: No, psychological impacts on a property, such as hauntings, are not required to be affirmatively disclosed to a prospective buyer and are, in fact, specifically exempted from affirmative disclosure under Massachusetts General Law Chapter 93, Section 114, commonly referred to as the Stigmatized Property Law. In 1998, the Stigmatized Property Law was enacted, which specifically states that brokers do not have a duty to investigate or affirmatively disclose murders, suicides, paranormal phenomena, or other possible stigmas. However, as with any direct inquiry from a prospective buyer, a REALTOR® is obligated to provide a truthful answer. If the answer is unknown, or additional information is requested, REALTORS® should direct the buyer to an appropriate resource. Q: Can a tenant be responsible for paying the water bill? A: Yes,…

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Protecting REALTOR® Liability

September 25, 2023

- By The MAR Legal Team

On August 16th, the highest court in Massachusetts issued its ruling in Hill-Junious vs. UTP Realty LLC. In the case, a patron was murdered outside of a nightclub shortly after a new owner purchased the property and there had been several incidents at the club under the prior owner. The plaintiff argued that a commercial landlord’s duty to prevent reasonably foreseeable criminal acts encompassed a duty to learn of criminal acts that occurred prior to their purchase of the property. MAR provided a legal brief explaining that such a duty would have a harmful impact on properties in lower-income neighborhoods and potentially also harm property owners and real estate professionals by exposing them to liability. Read MAR’s brief.    MAR’s brief was the basis for several questions at oral argument when Justices asked about impacts of a broad landlord duty on…

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FY24 Budget Supports Housing

- By The MAR Legal Team

We’re pleased to share that the Legislature has passed, and the Governor has signed, a budget for fiscal year 2024. Here are some items for which we successfully advocated:  Crumbling concrete foundation prevention – Helping homeowners afflicted with crumbling concrete foundations was one of MAR’s priority issues for last month’s REALTOR® Day on Beacon Hill. The budget does that in two ways, by increasing funding for the state’s foundation testing program and, most importantly, creating a quarry testing and licensing program to make sure that this problem stops now. We will continue advocating for assistance for homeowners already facing this problem.   Increased funding for housing assistance – the Legislature has continued its long-term commitment to providing housing assistance for those in need. Several line items received significant year-over-year funding increases, including the RAFT program (25%), state housing voucher program…

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Rent Control and Other Tenant Protections Ballot Question Certified

September 7, 2023

- By The MAR Legal Team

On August 6th, Massachusetts Attorney General Andrea Campbell certified the initiative petition on rent control over MAR’s legal objection. Read more about the petition here.  The Attorney General’s certification will set in motion a path for supporters to follow and a path for MAR and our partners to oppose rent control.   Rent control supporters have from now until November 22nd to collect just under 75,000 certified signatures. This is no easy task as signatures must be collected from across the state. If the supporters are successful in their signature gathering, the petition will move to the legislature in January 2024. The Legislature will then have until May 1, 2024 to pass the measure, propose a substitute, or take no action.   MAR has long successfully opposed rent control, and we will continue to do so as the ballot initiative…

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Notes From the Legal Hotline: September 2023

- By The MAR Legal Team

Q: Is completing an MLS Status Change form sufficient to alter the terms of the Exclusive Right to Sell Listing Agreement? A: No, the Status Change Form is an MLS form and is not a contract. Any changes to the terms of the original listing agreement, such as marketing terms, listing price, or length of the agreement, should be addressed in an addendum to the listing agreement, and signed and dated by all parties. The MAR Forms Library contains a number of helpful addenda, including: Agreement to Suspend Marketing of Property (#696) and Extension of Time of Representation Agreement (#697). While the Status Change Form may be used to demonstrate a “meeting of the minds” between the listing agent and the seller(s), any modifications to a contract should always be clearly made in writing, signed, and dated by all the…

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Open Houses Could Draw Out More Thieves

September 1, 2023

- By NAR Contributing Article

This is a contributing article from REALTOR® Magazine At open houses, thieves disguised as home buyers may swipe jewelry, prescription drugs, and other valuables from homes, real estate pros warn in a recent article in The New York Times. Some experts are predicting open house thefts could get worse this spring, too. “People tend to pick up little things: frames, silver pieces, Limoges boxes,” said Harriet Norris, a real estate pro with Douglass Elliman in New York. “They go easily from the table to the pocket.” Read Hayes, a research scientist and criminologist at the University of Florida, also told The New York Times that he expects thefts to worsen at open houses and return to pre-pandemic levels. “Being confined to our homes during COVID weakened our ability to self-regulate and have self-control,” he says. “That’s increased our risk-taking behavior. People are also…

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FY24 Budget Supports Housing

August 3, 2023

- By The MAR Legal Team

We’re pleased to share that the Legislature has passed a budget for fiscal year 2024. Here are some items for which we successfully advocated:  Crumbling concrete foundation prevention – Helping homeowners afflicted with crumbling concrete foundations was one of MAR’s priority issues for the 2023 REALTOR® Day on Beacon Hill. The budget does that in two ways, by increasing funding for the state’s foundation testing program and, most importantly, creating a quarry testing and licensing program to make sure that this problem stops now. We will continue advocating for assistance for homeowners already facing this problem.   Increased funding for housing assistance – the Legislature has continued its long-term commitment to providing housing assistance for those in need. Several line items received significant year-over-year funding increases, including the RAFT program (25%), state housing voucher program (16%), emergency shelters (48%), and…

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Rent Control Ballot Question Filed

- By The MAR Legal Team

On August 2nd, Massachusetts State Representative Mike Connolly announced his filing of an initiative petition on rent control. MAR has long anticipated and been preparing for this situation. The petition is the first step (of many) to getting a question on the ballot for the 2024 election. It requires only gathering ten signatures and filing language with the Attorney General’s office.   Process  Here’s what happens next:  The Attorney General will then determine if the petition meets the state’s constitutional requirements, usually by the first Wednesday in September (9/6).   Certified petitions are then filed with the Secretary of State’s Office. At that point, petitioners have 77 days to collect 74,574 signatures.   If that hurdle is met, the petition moves to the Legislature in January 2024. The Legislature has until May 1, 2024 to pass the measure, propose a substitute, or take…

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