Massachusetts Continuing Education Course – 2 Credits
This program is an in-depth explanation of the many agency relationships in Massachusetts. We will explore the process, procedure and forms needed to create these relationships. Creation of good policy and practices will be discussed. Emphasis will be on Designated and Dual Agency.
2. Agency
....A fiduciary relationship created under the law
of agency when two parties agree that one
party, the agent, will act on behalf of the other
party, the principal, subject to the principal’s
reasonable and lawful direction and control.
4. History & Background
1980’s
1983 FTC study of Buyers and Sellers to
determine if the consumer realized that the real
estate agents worked for the Sellers
71% of the Buyers thought the selling agent
worked “for” them
74% of the Sellers thought the agent worked
“for” the Buyer
5.
1990’s
Massachusetts enacts mandatory agency
disclosure 1991 (NAR recommendations
1991: timely, written, and meaningful
disclosure)
Originally targeted toward Buyers (Seller
agency disclosure not mandated until 1993)
1993 Form changes to allow Buyer Agency
information, disclosure and choice
Public awareness of representation increases
Demand for Buyer agency increases
6.
2000’s
Massachusetts adopts Designated Agency
Change in disclosure form
Massachusetts Mandatory Licensee – Consumer Relationship
Disclosure Form
Consent for Designated and Dual Agency required in
writing
Facilitation defined
Sub Agency requires written acknowledgment of vicarious
liability
and......
9. Types of Agency
Many agents involved in the investigation said
“they didn’t know who they were……yet”
Disclosure and decisions are two different
things
10. Types of Agency
• Two Agency Business Modes
– Designated Agency
– Traditional Agency
• Business model is decided by and applies to the
whole company
11. Types of Agency
Seller Agency
− Traditional Agency
− Designated Agency
− Sub-Agency
Buyer Agency
− Traditional Agency
− Designated Agency
14. Mary has just driven by your new listing and she is
very excited. It is exactly what she is looking for. When
she calls the office she finds out you are in. She will be
right over.
When would you disclose?
What relationship would you select?
15. Bob is standing in front of the office drooling over the
Broker Owners new listing in the window display. You
go out side and comment, “It is a beauty! Do you want
some more info?” Bob shakes his head and follows
you in.
When would you disclose?
What relationship would you select?
18. Policy, Issues and Risk
Agency position applies to all agents within a
company
Forms available and easy to use
Designated Agency Practices
− Separation of folders
− Privacy of documents
− Privacy of information
19. 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