MA CEU DISCLOSURES.....DISCLOSURES....DISCLOSURES - RE91R14

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DISCLOSURES...DISCLOSURES...DISCLOSURES RE91R14 Jody OBrien

Transcript of MA CEU DISCLOSURES.....DISCLOSURES....DISCLOSURES - RE91R14

DISCLOSURES...DISCLOSURES...DISCLOSURES RE91R14

Jody OBrien

Definition

What is DISCLOSURE?

This term means to make known, a revelation or the uncovering a thing that is kept hidden.

(Black's Law Dictionary) Hidden

From Whom to Whom

Agent to Agent Agent to Consumer

Consumer to ConsumerConsumer to Agent

.

• Property condition disclosure and “as is” clauses are the second-most common legal issues NAR members face.

• Legal Pulse• Legal Scan 2015

MGL CHAPTER 93AConsumer Protection Law

Chapter 93A

• Allows consumers to take legal action against unfair or deceptive conduct in the marketplace.

• The Attorney General take action against businesses, and prosecute a consumer protection case in the public interest.

• For claims of actual damages under $7,000, a consumer may file a legal action in the Small Claims

Chapter 93A

• Consumer sends a 93A Demand Letter– 30 days to respond– Not required if consumer is making a

counter claim to your lawsuit against them– Identifies damages– Encourages settlement– Defines claim

Chapter 93A

• Elements of the Demand Letter– Must be sent 30 days prior

to court action– Identification of the claimant– Identify the unfair or

deceptive practice– Identify the damages or

injuries– Request for relief or

damages

Triple Damages

Refused to Grant Relief

May also include Attorney’s fees

Willfully and Knowingly Violated 93A

Disclosure Legal Cases

• Lead Paint– Underwood v. Risman – 414 Mass. 96 (1993) – Piers v. Wheeler – 8 Mass L. Rep 410 (Mass. Super.) 1998

• Environmental – Urman v. South Boston Savings Bank – 424 Mass. 165

(1998)

• Zoning– DeWolfe v. Hingham Centre Real Estate – 464 Mass. 795

(2013) SJC 11168 – Quinlan v. Clasby – 71 Mass.App.Ct 97, 879 N.E. 2d 703

(Mass. App. 2008)

PROPERTY DISCLOSURE

CrimeActivityStatisticsDrug Rehab

Zoning

Multi FamilyRes/CommercialRestrictions

Rights of Ownership

EasementsVariancesRights

Flood

Flood PlainFlood Insurance

Stigmatized Property

GhostMurders SuicideNOT HIV

Sex OffenderEVERY buyer should be instructed how to check the states registration

Resources

Assessors Record Deed Plot Plan

Insurance Record Owner*

Where and How

MLS• State source

Sellers Disclosure• Obtain signatures

Written Communication• Email • Contracts• Certified Letter

Documentation• Copies• Journals• Recordings

History of the Property

ImprovementsHome Inspection

DamageFire or Flood

Title Issues

Resources

Written Reports Deed Professional

Estimates

Insurance Record Owner*

Where and How

MLS• State source

Sellers Disclosure• Obtain signatures

Written Communication• Email • Contracts• Certified Letter

Documentation• Copies• Journals• Recordings

Environmental Issues

Radon1

Mold

Asbestos

Lead Paint

Hazardous Materials

Septic/Title V

5

4

6

2

3

Resources

Written Reports

Professional’s receipts or estimates

Local/State & FederalOfficials

Insurance Record

Owner*Required Lead Paint

Disclosure

Where and How

MLS• State source

Sellers Disclosure• Obtain signatures

Written Communication• Email • Contracts• Certified Letter

Documentation• Copies• Journals• Recordings

• Additional Resources– www.mass.gov/dph/clppp– www.epa.gov/superfund– MAR Webinar Wednesday

• A Flood Insurance Playbook January 14th

– www.floodsmart.gov– http://www.mass.gov/eopss/agencies/sorb/

Do’s• Tell what you know• Document Everything• Give consumers

resources• Ask all sellers to

complete a disclosure• Educate Buyers and

Sellers

Don’ts• Guess, exaggerate or

pontificate!• Answer without

documentation• Become the Source• Confuse service with

responsibility

Compliance

• Create Perfect Files– Samples– Forms– Review

• Develop Resources– Website– Experts– Documentation

• Education and Information– Required programs– Legal hotline

AskFile Review

Tell

Jody O’BrienThe RE/Education Company

Committed to Professionalism in Real Estate through Education

Blogwww.reeducator.wordpress.comPresentationwww.slideshare.net/ReEducationCompanySocial Mediawww.twitter.com/reeducatorwww.youtube.com/msreeducatorwww.facebook.com/reeducatorwww.linkedin.com/in/reeducator

Thank you for Attending