By: The Massachusetts Association of REALTORS® Legal Team

Q: I have a client who is selling the house of his deceased parents. He is the executor of their estate. He wants to exclude his siblings, who are all estate beneficiaries, from any updates on the sale of the house. What should I do? A: Being beneficiaries does not obligate the listing agent to provide the siblings with transaction updates. But you must first determine whom the brokerage represents and who has authority to sell the house. Beneficiaries do not automatically become brokerage clients just because they will receive sale proceeds at closing. The important first step is for the brokerage to determine if they represent all the siblings as sellers. If all the siblings are clients under the listing agreement, the “executor son” cannot demand that the agent withhold transaction information from his siblings.

Before excluding the siblings from all communications, the agent should have the broker and estate attorney confirm:

• The listing agreement: Is the brokerage’s client the “executor son” or all the siblings individually?
• Authority to sell: Review the court appointment, will, and any license to sell or court restrictions. Appointment as executor does not establish unrestricted authority to sell real estate; Massachusetts requires a qualifying power of sale in the will OR a court-issued license to sell. 

If estate counsel confirms that the brokerage represents only the “executor son” and he has sole and legal authority to sell, the agent should follow his instruction to route all updates through him.

Q: I am a listing agent, and a Buyer just terminated the transaction. The Seller thinks they are entitled to the deposit, but the Buyer refuses to sign a release. The Seller wants to relist the property this weekend. Can I change the listing to active if there is a dispute over the deposit in a previous transaction? A:  The key issue is whether the first contract has been properly terminated. Before changing the listing to active, review the Contract to Purchase and P&S for any termination, notice, default, and extension provisions. Have the seller’s attorney confirm to you in writing that all required termination and notice steps were properly executed. A disputed deposit alone does not establish that the contract ended; a buyer may potentially pursue a claim to the property. The seller can relist while the deposit remains in escrow, once seller’s counsel is satisfied that the prior purchase contract has been legally terminated. The buyer’s refusal to sign a deposit release does not automatically halt relisting a property, but it may be a sign that a contract dispute needs to be resolved before the seller can relist and enter a contract with another buyer.

Q: Can members of the same real estate team represent both the seller and buyer in a transaction? A: A team's ability to engage in designated agency depends on the overall brokerage policy and how the team members work together. If the brokerage has a designated agency structure, one team member can be appointed as the seller’s agent while another serves as the buyer’s agent, provided measures are taken to ensure confidentiality. As long as team members do not have access to the seller's confidential information and are not designated as the seller's agent, they are free to represent the buyer. This setup allows both agents to maintain a "firewall of confidentiality" throughout the transaction, allowing them to fully serve each client. However, if your team works together for each client and has access to client files, proceed with caution. If a team member is a designated agent for a client, they cannot switch roles to represent the buyer without creating a dual agency relationship. Smaller teams may likely face greater challenges in managing confidentiality requirements and providing full fiduciary representation to each client. In these situations, brokerage policy and client consent are imperative.

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.