AGENCY & DISCLOSURE — CHEAT SHEET

FIDUCIARY DUTIES (LCODAR)

|----------|---|

---

AGENCY TYPES & DUTIES

|---|---|---|---|

---

DUAL AGENCY RED FLAGS

Dual agency is permitted in MA BUT:

• MUST have informed written consent of BOTH parties BEFORE it occurs

• Cannot disclose:

- Seller's lowest acceptable price → to buyer (without seller consent) - Buyer's highest acceptable price → to seller (without buyer consent)

• Cannot zealously represent both sides simultaneously (inherent conflict)

---

MANDATORY DISCLOSURE FORM (254 CMR 3.00)

|---|---|---|---|

First Personal Meeting = Open house, showing, initial consultation — NO EXCEPTIONS —

---

BUYER'S AGENT OBLIGATIONS (HIGH-YIELD)

✓ Must disclose proactively: market comparables, defects, overpricing — *don't wait to be asked* ✓ Coordinate: inspections, review disclosures, monitor contingency deadlines ✓ Protect: buyer's negotiating strategy & financial capacity (confidential) ✓ Co-broke compensation: seek from seller's broker; if below agreed minimum, buyer may owe difference

---

EASILY CONFUSED PAIRS

|---|---|

Duty	Definition
Loyalty	Work exclusively for principal's interests
Confidentiality	Protect principal's financial capacity & strategy
Obedience	Follow principal's lawful instructions
Disclosure	Inform principal of all material facts
Accounting	Handle principal's funds properly
Reasonable Care	Apply professional skill & knowledge
Relationship	Represents	Owes Fiduciary Duties?	Key Rule
Listing Agent	Seller	✓ Seller only	Seeks highest price/best terms for seller
Buyer's Agent	Buyer	✓ Buyer only	Protects buyer interests; discloses defects proactively
Dual Agent	Both	⚠ Reduced	Requires written consent from both parties BEFORE dual agency arises
Designated Agent	Seller & Buyer (different licensees in same firm)	✓ Full duties each	Preserves full fiduciary duties for each party
Facilitator	Neither	✗ No	Honesty & fair dealing only; must disclose in writing
When?	To Whom?	What Form?	Documentation
At FIRST PERSONAL MEETING to discuss specific property	Prospective buyer	Written "Mandatory Licensee-Consumer Relationship Disclosure"	Signed; broker retains 3 years
Covers: listing agent, buyer's agent, or facilitator role	Explains representation relationship
Pair	Distinction
Dual Agency vs. Designated Agency	Dual = same agent, both parties, needs consent & reduced duties. Designated = different agents in same firm, full duties each.
Buyer's Agent vs. Facilitator	Buyer's agent = fiduciary, owes LCODAR. Facilitator = non-fiduciary, honesty & fair dealing only.
Listing Agent vs. Cooperating Buyer's Agent	Listing agent = seller's agent. Cooperating agent = presumed buyer's agent (unless otherwise disclosed) since mandatory disclosure law.

---

KEY THRESHOLDS & RULES

• Dual agency consent timing: BEFORE dual agency arises (not retroactively)

• Disclosure retention: 3 years

• Unrepresented buyer + listing agent: Listing agent owes fiduciary duty to seller, not buyer → buyer should get own representation

• Material facts: Buyer's agent must disclose all known facts affecting property value (proactively)

---

EXAM QUICK HITS

🔴 Dual agency without consent = violation 🔴 Fail to disclose relationship at first meeting = violation 🟢 Buyer's agent volunteers defects = correct (fiduciary duty) 🟢 Designated agency = best alternative to dual agency (full duties preserved) 🟢 Facilitator in writing = acceptable if both parties agree