Updated Mandatory Consumer Disclosure Form Provides Better Guidance
December 4, 2021 Legal Updates, Industry News
The Board of Registration of Brokers and Salespersons has released an updated Mandatory Licensee-Consumer Relationship Disclosure. The update disclosure clarifies that in the absence of a personal meeting between the licensee and the consumer, the form must be presented no later than the licensee entering into a contract with the consumer.
This clarification is at the request of CCIAOR, who appeared before the Board of Registration of Brokers and Salespersons more than two years ago asking for clarification of when or if the mandatory consumer disclosure form is due when there is no personal meeting (face to face in-person).
Additionally, the disclosure now clearly states that it is only required for residential property. Residential property is defined as a 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 dwelling.
This clarification comes after a court decision applied the mandatory form to a commercial transaction, which was not the guidance generally accepted in the Massachusetts real estate community.
The Massachusetts Association of REALTORS is working with form provider software companies to ensure the libraries are updated to include the new version. In the meantime, the updated disclosure may be accessed, HERE.