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. Real estate licensees are required to notify all prospective purchasers and lessors about the dangers of lead paint and must inform prospective buyers about buyer's 10 day right to a lead paint inspection. The three forms available are entitled the Property Transfer Lead Paint Notification Certification form, the Tenant Lead Law Notification form, and the Tenant Lead Law Certification form. For more information about the lead paint laws, consult Massachusetts General Law Chapter 111.