We practice full disclosure and think it’s important for you to understand the paperwork we bury you in. When you work with us we go over every document in detail – to get you started we put together a brief description of the forms and contracts used in most Massachusetts residential real estate transactions.
MA Agency Disclosure Form
Describes the different types of representation between a buyer or seller and the real estate agent. Agents must disclose, in writing, who they represent in a particular transaction. This is NOT a contract but must be presented to you at the first meeting to discuss a property and signed by you to acknowledge that you received it.
Lead Paint Notification Package
Massachusetts outlawed lead paint in 1971 and the Feds followed in 1978 due to the health risks posed to children. Today, Massachusetts and Federal law require that all prospective home purchasers of homes built prior to 1978 be provided with verbal and written warning about the dangers of lead paint as well as your other rights and responsibilities under the law. All parties must sign the Property Transfer Notification Certification prior to an offer being presented on any residential property built before 1978. (BTW, renters are also protected under this law.)
MA Exclusive Right to Sell
This listing contract between broker and owner outlines a definite time period during which the broker has the exclusive right to earn a commission on the sale of the property. The document will also state the listing price and broker commissions. To be enforceable the document must be signed by all parties.
MA Exclusive Buyer Agency Agreement
This contract establishes and agency relationship between the real estate agent and the buyer. Much like the Exclusive Right to Sell, it outlines the duties and responsibilities of the parties and the time period of the agreement. To be enforceable the document must be signed by all parties.
Check out more info on MA Buyer Representation & Agency.
Condition of Property Disclosure
Unfortunately this disclosure is NOT required in Massachusetts but lots of seller agents do use it. The form requires the home seller to reveal, in writing, all known information regarding the title, zoning, utilities, structural information/improvements, and water problems. We always request this disclosure before submitting an offer on any property. Keep in mind, the buyer always has the right to ask questions about the property and the seller is obligated to present the facts.
MA Offer to Purchase Real Estate
Outlines the initial details of the offer and is valid for a specified amount of time. A deposit normally accompanies the document which is signed by the buyer and presented to the seller who can accept, reject or counteroffer. The offer becomes a binding contract when acceptance is communicated to the buyer. The contract is fully executed when signed by both parties.
Purchase and Sale (a.k.a P&S)
A formal written agreement which details the essential terms and conditions of the sale. This document is usually pretty lengthy! At a minimum, to be fully executed the contract must be initialed, signed and dated by all parties and include the following:
- Description of the buyer(s) and seller(s)
- Description of the real estate
- Consideration (a.k.a purchase price).
We strongly advise you to review the contents of the P&S with an attorney prior to signing.
