Agency
In Massachusetts, the principal-agent relationship in real estate is governed primarily by:
AFederal law only
BMassachusetts common law (agency law) and MGL Chapter 112✓ Correct
CThe NAR Code of Ethics
DMLS rules and regulations
Explanation
The principal-agent relationship in Massachusetts real estate is primarily governed by common law agency principles and the state's real estate licensing statute (MGL Chapter 112, §§87PP-87DDD).
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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