I want to introduce and explain to you the form that you see here that often causes confusion with buyers and sellers. This Massachusetts Mandatory Licensee-Consumer Relationship Disclosure is more commonly referred to simply as Agency Disclosure.
This form was released by the Commonwealth of Massachusetts in the early 1990’s. Agents are required by state law to provide this form to you upon the first meeting to discuss a property. The Agency Disclosure form is NOT A CONTRACT – it’s a disclosure notice for your information and protection. It’s designed to educate consumers about the different ways they can work with an agent – and it requires agents to disclose who they represent and any potential conflicts of interest.
There are 3 basic relationships in Massachusetts:
• Seller’s Agent (also called the Listing Agent)
• Buyer’s Agent
The Seller’s Agent represents the seller and their interests. The Buyer’s Agent represents the buyer and their interests. Facilitators helps the consumer without representation and are a neutral party.
There are also 2 forms of Agency:
• Designated Agency and
• Dual Agency
Designated agency is when 1 firm represents both parties. For instance, Jane Smith from Coldwell Banker Boston may represent the seller and I may represent the buyer. Dual agency is when an agency has a listing agreement on a property for sale and also finds a buyer. A dual agent represents the buyer and seller only with the written consent of both parties and the agent remains neutral.
This is a very quick explanation of Agency Disclosure. I often have buyers that I meet who are confused by this form and who have sometimes seen properties with other agents and have never seen this form! Again, this form is required by state law and must be given to you by the agent at your first meeting. An agent that doesn’t do this is violating state law and shows that they don’t care about your interests. It’s in your best interest to work with an agent who provides you with this form at your first meeting and for you to not reveal any confidential information to agents who do NOT represent you. If you want advice and advocacy, find a buyer’s agent to be on your side throughout the transaction.
If you have any questions about this form or about Massachusetts agency, please call me at (617)270-1120.