Massachusetts Continuing Education Course - 2 Credits An interactive and informative course designed to review the most commonly used forms in a real estate transaction. We will look at federal, state and local forms. We will explore the difference between the laws and regulations and the policies and customs regarding their use.

1. Commonly Used Forms: Mandatory/Optional
RE39R05
Jody OBrien
The RE/Education Company

2. LICENSEE-CONSUMER
RELATIONSHIP DISCLOSURE

3. The Mechanics…
 First meeting
 Disclosure of existing relationship
 Name of office/firm and license number
 Office policy relative to representation
(designated v traditional) with disclosure and
consent
 Signatures acknowledging receipt of information
 Licensee’s number and “today’s” date

4.  Agency Disclosure Investigation
 When would you disclose?
 What would relationship would you
select?

5. Using the New Form

6. Seller Agent to a Seller
Designated Agency

7. Rita Lister Rita Lister 12345
ABC Realty Company 6789
Susan Seller Susan Seller

8. Rita Lister Rita Lister 12345
ABC Realty Company 6789
Susan Seller Susan Seller

9. Buyer Agent to a Buyer
Designated Agency

10. Betty Buyer Betty Buyer

11. Rita Lister Rita Lister 12345
ABC Realty Company 6789
Susan Seller Susan Seller

12. Betty Buyer Betty Buyer
Barbara Agent Barbara Agent
25250
Perfect Real Estate
World
77777

13. Seller Agent to a Buyer
Designated Agency

14. Rita Lister Rita Lister 12345
ABC Realty Company 6789
Betty Buyer Betty Buyer

15. Buyer Agent to a Seller
Designated Agency

16. Susan Sellet Susan Seller
Barbara Agent Barbara Agent
25250
Perfect Real Estate
World
77777

17. Informed Consent
Conclusive
Persumption
In writing
Approved
Language
Signed by
consumer
Signed by
agent

18. Timing of Consent to
Dual Agency
Dual Agent
Seller
First Form
Relationship
Notice
Buyer
First Form
Relationship
Notice

19. Dual Agent
Seller
First Form
Relationship
Notice
Buyer
First Form
Relationship
Notice

20. Dual Agent
Seller
AT the Time of
Occurrence
Buyer
At the Time of
Occurrence

21. Designated
Agent Designated
Agent
Seller
First Form
Relationship
Notice
Buyer
First Form
Relationship
Notice

22. • GBAR Forms
• Exclusive Right to Sell/Buy with Designated
• Consent to Dual
• MAR Forms
• Exclusive Right to Sell/Buy with Designated and Dual

23. Home Inspector Forms
 Home inspector license law enacted in 1999
 Effective May 1, 2001 all licensees required to
provide a copy of the state mandated document
entitled “Facts for Consumers about Home
Inspectors” at the time of the first written
contract to purchase
 Designed to provide Buyers with information
about the process and their rights, not a
requirement that the Seller allows the Buyer to
have an inspection

24. Lead Paint Disclosures
 1995 Both Federal and State laws require
disclosure of potential hazardous risks in homes
built prior to 1978 to prospective tenants and
purchasers
 Liability can arise if the agent fails to follow
required procedures for disclosures
 Liability could be for deleading expenses as well
as for personal injuries

25. Lead Paint
 Property Transfer Certification must be
completed and signed by the Seller and the
listing Broker (agent) before it’s signed as
acknowledged by the Buyer
 Upload Certification to MLS or…
 Attach document to all listing sheets
 Buyers acknowledge receipt with offer…logical
sequence

26. Lead paint
Failure to provide Buyer with a form that has
already been completed by the Seller creates a
risk of liability
Often overlooked…Federal Lead regulations
require that the executed document be attached
to the Purchase and Sale

27. Tenant Lead Notification
 Landlord or agent must provide each
prospective tenant with written notice prior to the
execution of a written agreement
 Landlord and agent must maintain copies of all
signed documents

28. Short Term Rentals
 Exempt if rented less than 31 days
 Landlord and tenant sign a Short-Term Vacation
or Rental Exemption Notification
 http://www.mass.gov/dph/clppp/vacation.pdf
 Visual inspection and acknowledgement
 Must include number of days, telephone
number, signature, and dates
 Failure to complete form may negate exemption

29. Tenant Fee Disclosure
 Written notice to prospective tenants must
be given at the first personal meeting
 Must state charge for assistance, when
and how paid, and whether the fee is due
even though no tenancy may be created
 Requires that the form provide agent’s
name, license number, date, and
signatures

30. Tenant Fee Disclosure
 Where no fee is to be charged there is no
affirmative obligation to provide disclosure
 Records must be kept for three years,
including copies of checks, or money
orders, or written cash receipts
 Failure to provide a notice may result in
the tenant’s right to return of application
and rental fees…

31. Tenant Fee Disclosure
• MAR
• GBAR

32. Seller’s Description of
Property
 Massachusetts is not a mandatory Seller
disclosure state
 May reduce liability
 Disclose, disclose, disclose

33. Listing Agreements
• Listing Contracts are:
• contracts for service.
 Exclusive right to sell
 Exclusive agency
 Open Listing
 Net Listing *
*net listings are illegal

34. Buyer Agency Agreements
• Buyer agency contracts are:
• contracts for service.
 Exclusive buyer agency agreement
 Exclusive agency buyer agency
agreement
 Open buyer agency agreement

35. Offer to Purchase
• An Offer to Purchase is a:
• contract of sale of real property.
 parties
 description of property
 price
 terms

36. Offer to Purchase
 earnest money
 dates
 contingencies

37. Purchase and Sale
Agreement
• A Purchase & Sale agreement is a: contract for sale.
• It can be viewed as the road map of the transaction.

38. Purchase and Sale
Agreement
• Minimum provision of the contract:
 Parties (identification of buyers and seller)
 Description of property
 Consideration
 Time for performance and possession
 Title Deed

39. Purchase and Sale
Agreement
 Adjustment (proration of taxes,
utilities, fuel, insurance etc.)
 Casualty loss
 Default
 Contingencies clauses
 Construction of agreement
 Dates and signatures

40. Specific Performance
• Specific performance is when the seller is forced to
transfer legal title and the buyer gets possession.
• Legal title only transfers on delivery and acceptance of
the deed.

41. Equitable Title
• After the buyer and seller have executed a sales
contract, the buyer receives an interest in the land
known as equitable title. This allows the buyer to sue in
equity for specific performance if the seller refuses to
perform under the contract of sale and the buyer is ready
willing and able to perform.

42. Risk Reduction
• Always use a Form
• MAR
• GBAR
• Company
• Place a disclaimer on all forms of
communication
• Know and follow the legal timing of forms
• Document transmittal and receipt of forms

43. Risk Reduction
• Keep a copy of every form sent and
signed
• “Eyes on the folders”
• “Perfect File”

44. Jody O’Brien
The RE/Education Company
Committed to Professionalism in Real Estate through Education
Website/Blog
www.reeducationcompany.com
Presentation
www.slideshare.net/ReEducationCompany
Social Media
www.twitter.com/reeducator
www.youtube.com/msreeducator
www.facebook.com/reeducator
www.linkedin.com/in/reeductor
Thank you for Attending