Agency Relationships in Massachusetts
Massachusetts uses a mandatory relationship disclosure and recognizes designated agency and the facilitator role. This chapter explains the disclosure, the recognized relationships, and dual agency.
The Mandatory Relationship Disclosure
Licensees must present the Mandatory Licensee-Consumer Relationship Disclosure at the first personal meeting to discuss a specific property. It identifies whether the licensee acts as a seller's agent, buyer's agent, designated agent, facilitator, or dual agent. The disclosure documents the consumer's understanding and does not by itself create an agency relationship.
Designated and Dual Agency
Under designated agency, a broker may appoint separate agents within the firm to represent the buyer and the seller individually, protecting each party's confidential information. Where the same agent would represent both parties, that is dual agency and is allowed only with the written consent of both. The dual agent must not disclose one party's confidential information to the other.
The Facilitator Role
Massachusetts recognizes the facilitator, a licensee who assists both parties without representing either as an agent. A facilitator owes no duty of loyalty or advocacy but must still be honest, deal fairly, and disclose known material defects. The chosen relationship must be identified on the mandatory disclosure so consumers understand the level of representation they are receiving.