MA Real Estate Practice And Law Flashcards
What are the fiduciary duties of an agent?
OLDCAR
Obedience- must follow all instructions of the principal, legal and ethical. Ex. No for sale on lawn, must not put one.
Loyalty- to the seller above and beyond anyone.
Disclosure- the principal has the right to know the same facts the agent knows, whether favorable or not to principal.
Confidentiality- must keep facts, information and discussions private. This survives the termination of the relationship.
Accountability- the agent must protect all personal property received on the principal’s behalf and keep accurate records. No commingling client funds with general account monies.
Reasonable care- agent mist exercise competence and care in promoting the best interest of the principal while protecting the principal from foreseeable harm. Get assistance of an expert when needed or requested by the principal.
This requirement mandates each broker or salesperson to provide to the consumer the Massachusetts Mandatory Licensee-Consumer Relationship Disclosure form in the following three circumstances
- At the first personal meeting
- When dealing with a prospective buyer or seller.
- When discussing a specific property.
MA does not require providing a disclosure form to the buyer or seller or other licensees who attend this
Open house. However, if an offer is made there the licensee is required to present the disclosure form prior to writing the offer to purchase. If they also inquire about another property at the open house, the agent must present the MA Mandatory Licensee-Consumer Relationship Disclosure form.
A seller who engages the services of a listing broker is the broker’s client, and the broker is the
Seller’s agent
A buyer who engages the services of a broker becomes the broker’s client, and the broker is the
Buyer’s agent
When a broker represents both the buyer and seller on the same property
Disclosed dual agent
Exaggeration of a property’s benefits is called
Puffing - ex. This is the best house on the street. You can say your opinion statements. It be careful no to say “best”
Exaggeration of a property’s benefits is called
Puffing - ex. This is the best house on the street. You can say your opinion statements. It be careful no to say “best”
The intentional misrepresentation of a material fact in such a way as to harm or take advantage of another
Fraud
An undesirable property because of a known occurrence such as a homicide, illegal drug manufacturing etc.
Stigmatized properties
The MA Supreme Court case that held a broker is entitled to a commission only when these conditions are met
Tristram’s Landing v Wait
The broker produces a purchaser ready, willing, and able to buy on terms fixed by the owner
The purchaser enters into a binding contract
The purchaser completes the transaction by closing the title
In some cases a broker may claim a commission by showing he was the __________ ______ of a sale even though the broker did not,actually complete the terms of the employment agreement.
Procuring cause
This means that the mortgage splits title to the property- the mortgagee takes legal title while equitable title is retained by the morgagor
MA is a title theory state (borrower is the mortgagor and lender is the mortgagee)
This MA Act applies to all mortgage applications taken on or after November 7, 2004
The Massachusetts Predatory Home Loan Practices Act-
No longer allows for unfair financial practices including: using false appraisals to sell properties for much more than worth; encouraging buyers to lie about their income, expenses or cash available; knowingly lending more money than a borrower can afford to repay; charging high interest rates; charging fees for nonexistent products or services; pressuring borrowers to accept higher-risk loans; using high pressure sales tactics
In MA, the payments on a loan are paying some of the interest and principal
Amortized loans
In MA, Fair Housing Law prohibits discrimination in housing and real estate basis not only on race, color, religion, sex, including gender identity, national origin, familial status and disability but these other areas also
Genetic information, ancestry, marital status, veteran or members armed forces, public assistance recipient, age, handicap
Under MA anti-discrimination laws it is illegal for a landlord to refuse to rent a dwelling to a family with a child under this age due to the presence of lead paint
six
Two family owner occupied residences are exempt from MA anti-discrimination laws except for regard to this
persons receiving public or rental assistance
Fair housing complaints in MA are referred to and investigated by this agency
Massachusetts Commission Against Discrimination- must be filed within 300 days; they may award up to $2,000 in damages and the board may suspend the real estate agent’s license.
if the property was built prior to 1978, MA approved lead disclosure form entitled this must be signed by the seller and the prospective buyer or tenant whether or not lead is present
Property Transfer Notification Certification - must be given along with the Childhood Lead Poisoning Prevention Program (CLPPP) Packet that details info. on lead paint
If the purchaser wants to have an inspection performed, the seller must allow the potential buyer this many days to conduct lead paint and risk assessment inspections before the purchaser becomes obligated under a contract to purchase
10 days
In MA sellers are required to provide buyers with these and an appointment must be made with a local fire department for an inspection of the property and a fee must be paid
Smoke detector compliance certificate
These detectors are also required in MA for all residential dwellings equipped with fossil fuel burning equipment
Carbon monoxide detectors
This requires that all properties that have on-site sewage disposal systems are to have those systems inspected when a change in ownership of property is going to take place or an addition to the property is planned.
Title 5
How may members are there on the MA Board of Registration of Real Estate Brokers and Salespersons
Five members consisting of 3 full time real estate brokers in business for at least 7 years and two designated public representatives. They must hold 4 meetings per year
Real estate agents must complete this to become a broker
Three years as a real estate agent and a minimum of 25 hours per week as well as 40 classroom hours.
How long is a real estate valid for and how many continuing education hours are required?
Two years; 12 hours
in MA if an agent is convicted of blockbusting, what is the penalty?
Subject to a fine of $1,000 to $2,500 and or up to 6 months in prison and license suspended, revoked or not renewed.
If the board receives a written complaint, it has this long to hold a hearing?
10 days of written notice and a decision can be appealed to the superior court within 20 days following notification of the decision.
All brokers and salespersons must provide each prospective purchaser or seller with this form disclosing their relationship
Consumer Licensee relationship disclosure
