Test 14: Consumer Protection & Disclosures

The Attorney General.

The Massachusetts Attorney General adopts regulations for and enforces Massachusetts’ Consumer Protection Act.

The presence of a septic system and/or lead based paint

Massachusetts is guided primarily by the doctrine of caveat emptor. However, a seller of unrepresented property must disclose the presence of a septic system and/or lead based paint.

negligent misrepresentation

The real estate agent did not know her statement was false so it cannot be intentional misrepresentation. Innocent misrepresentation has some appeal but she did not have a reasonable basis for believing her statement was true, she simply assumed it.

buyer.

Caveat emptor means buyer beware. When the doctrine is invoked it imposed the burden of discovering property defects primarily on the buyer.

That the property has had an alleged parapsychological or supernatural phenomenon (haunting)

The fact that property is alleged to be haunted is not considered a material fact and a real estate licensee is not required to disclose it.

It is not required by law in any real estate transactions

Massachusetts law does not require any sellers to complete the Seller’s Statement of Condition form.

That the neighborhood has a high crime rate

A Massachusetts real estate licensee is not required to disclose crime rates in a neighborhood.

new homes

The implied warranty of habitability is automatically attached to the sale of new homes. It cannot be waived or disclaimed by the seller or the buyer, and it exists even if the builder did not provide a one-year written warranty.

be brought by the Attorney General, a consumer or another business.

An action under the Consumer Protection Act can be filed by the Attorney General, a consumer or another business. Actions not filed by the Attorney General are sometimes called a private cause of action.

$10,000

Violation of an injunction issued pursuant to the Massachusetts Consumer Protection Act can result in a civil penalty up to $10,000 for each violation.

Facts for the Consumer.

The consumer home inspection pamphlet is called “Facts for the Consumer”. Real estate licensees and unrepresented sellers must provide the pamphlet to a buyer.

assess the physical condition of the structure and systems that are easily accessible and observable.

In a home inspection only conditions which are easily accessible and observable are assessed. The inspection is non-invasive, so no part of the structure is removed, dismantled, or even drilled into. What items need to be repaired by the seller is determined by the agreement between the parties.