1990 MA Board of Registration of Real Estate Brokers and Salespersons held first agency forum. 1993 MA Board of Registration of Real Estate Brokers and Salespersons revised agency disclosure form to recognize buyer agency. Current MA regulation requires real estate agent to disclose form of agency to prospective buyers and sellers of real estate at the first personal meeting to discuss a specific property. Establishment of Agency Express written or oral contract where agent and principal agree to terms. Compensation does not create an agency relationship.
All agents have a duty to treat customers fairly.
Where seller client expressly or implicitly authorizes his broker to use other agents to market seller's property. Agent is entitled to compensation regardless of who completes transaction during the period of agreement. Duty survives termination of agency relationship. Duty does not apply to legally required disclosures such as known physical hazardous conditions of property. Undisclosed dual agency is illegal in Massachusetts and courts require forfeiture of the commission by those found guilty of this activity among other possible damages.