My Disclosure on Disclosures
If you’re going to work with me to buy or sell a home, there are a few forms that I’ll ask you to sign. Buying or selling a home can be a stressful process, and no one likes signing documents they don’t understand. Here I’m going to breakdown all of the mandatory disclosures, so you can feel comfortable knowing what you’re signing. Keep in mind, these are all disclosures, and not contracts.
The first is the Massachusetts Mandatory Real Estate Licensee-Consumer Relationship Disclosure. Technically, this is to be signed at the first in-person discussion of a specific property. That’s not always doable, like if I’m at a party and someone starts asking me about homes on the market. I put this in front of clients at our first official meeting. Anyway, this disclosure outlines 3 basic points.
An licensed real estate agent can represent a buyer, a seller or act as a facilitator.
Regardless of role, the licensed agent must act lawfully and honestly
Representation by a licensed agent does not relieve consumers of their responsibility to protect their own interests, and need to seek the appropriate professionals for assistance outside the scope of a licensed agent.
Once the consumer has read and understands the disclosure, it’s checked what role the agent will take, and then everybody signs acknowledging the sitatuation.
The next up is the Designated Agency Consent. This outlines specifically whether I’m working as a buyers agent, or a sellers agent. It goes a little further to explain that I have a fiduciary duty to the consumer, while other agents in my office do not and could potentially represent the other side of the transaction. Long story short, this gives me consent represent you in a real estate transaction. This doesn’t give me the exclusive right to represent you.
From here, it could go either way. If you’re a buyer, I’ll ask you to sign the Exclusive Right to Represent Buyer Agreement, or if you’re a seller, the Exclusive Listing Agreement. Both of these documents outline further the expectations from each party and are binding contracts. A buyer’s agreement outlines the term of the agreement, services to be expect, the scope of CBRB representation, compensation and buyer’s obligations. Similarly, the listing agreement outlines the term, the initial listing price, the scope of CBRB representation, exclusive rights of CBRB, seller’s obligations, compensation and seller’s representations and acknowledgements. I could go into more detail, but this post is dedicated to disclosures.
The last disclosure is the Affiliated Business Arrangement Disclosure Statement. Coldwell Banker is a subsidiary of Realogy Holdings, which owns and operates a variety of related businesses. This disclosure lets the consumer know what companies are affiliated with Coldwell Banker, their services and their prices.
If you have any questions about this post, would like to review these disclosures or have any questions at all related to real estate, let me know! You can email me at willy.charleton@nemoves.com or text/call at 617 528 8461.