Q: The buyer I represent is related to me through marriage, do I have to disclose this?
A: Yes, both Massachusetts law and the REALTOR® Code of Ethics mandate that conflicts of interest are disclosed in writing to the parties.
The Board of Registration of Real Estate Brokers and Salesmen’s Professional Standards of Practice, 254 CMR 3.11(a) provides, in part, that “A broker or salesperson shall not …. represent a client in the buying, selling, renting or exchange of real property in which the broker or salesperson or his/her kin has a personal financial interest unless the broker or salesperson shall fully disclose in writing to all parties…and unless the parties shall provide the broker or salesperson with written acknowledgment of such disclosure.”
Similarly, Article 4 of the REALTORâ Code of Ethics provides that REALTORS who have a present or contemplated ownership interest in the sale, purchase, or lease of property must make a written disclosure prior to the signing of any agreement. Standard of Practice 4-1 makes clear that present or contemplated interest includes transactions in which REALTORS “represent a member of their immediate family.”
Sometimes, the definition of “kin” or “immediate family” can seem subjective. As a best practice, if you consider the person to be family, make the disclosure using MAR’s Form #527: Disclosure of Conflicts of Interest, or its equivalent.
****************************************************************************
Services provided through the Massachusetts Association of REALTORS® is intended for informational purposes and does not constitute legal advice, nor does it establish an attorney-client relationship. The Massachusetts Association of REALTORS®, by providing this service, assumes no actual or implied responsibility for any improper use of responses to questions through this service. The Massachusetts Association of REALTORS® will not be legally responsible for any potential misrepresentations or errors made by providing this service. For more information regarding these topics authorized callers should contact the MAR legal hotline at 800-370-5342 or e-mail at legal@marealtor.com.