Notes from the MAR Legal Hotline: June 2026
By: The Massachusetts Association of REALTORS® Legal Team
Q: I ran a prospective tenant through FOREWARN and the report shows that she has a criminal conviction on her record. Can I share this information with my landlord-client?
A: No. The FOREWARN Subscriber Agreement that you executed requires you to keep all search results confidential. FOREWARN is simply intended to be a safety tool in your professional toolbox. If you see information regarding a potential client that concerns you, FOREWARN gives you an opportunity to increase your safety protocols before engaging with the client. Additionally, FOREWARN should not be used for tenant financial screening purposes or to determine if a buyer will be eligible for a mortgage. FOREWARN is not a “consumer reporting agency” and the company notes that some financial data contained in the app may be outdated. You should never tell a potential tenant or buyer that they are unqualified to enter into a real estate transaction because of information that you found in FOREWARN. For more information, please see: https://www.forewarn.com/faqs/
Q: I have funds in my escrow account that have been there for several years, and we never received instructions on how to disburse them. We sent a release of funds multiple times, but it was never returned to us. How can I release these funds?
A: Escrow funds cannot be unilaterally released, absent clear mutual instructions (generally, a signed release). Absent a signed release, a court order through interpleader is the best way to determine who is entitled to the money. You can file an interpleader action in the district court where the property is located. Once filed, you will likely need to deposit the funds with the court, name both the seller and buyer as defendants, and ask the court to decide which party is entitled to the funds. These steps will best protect your brokerage from liability.
Here is the usual process:
- The broker retains an attorney.
- The attorney files a complaint or interpleader.
- The parties are served.
- The court may hold a hearing.
- The court determines entitlement or approves a settlement.
- The court orders the release of funds.
Q: What Are The Advertising Requirements In Massachusetts Related To Social Media Platforms Like Instagram And Facebook?
A: Massachusetts real estate advertising laws apply fully to social media platforms, including Instagram, Facebook, TikTok, LinkedIn, YouTube, and X/Twitter. According to the Massachusetts Board of Registration of Real Estate Brokers and Salespersons, any social media post that markets a property, brokerage services, listings, open houses, or any real estate-related business activities is considered a real estate advertisement. To comply with state regulations, all real estate advertising must clearly identify the licensed brokerage. This requirement includes posts, reels, stories, paid advertisements, video content, and team pages. The name of the brokerage must appear directly within the advertisement itself. Additionally, Massachusetts law does not allow for “one-click-away” disclosures. Agents must not rely solely on profile bios, “about” sections, account names, landing pages, or external links for brokerage identification. Instead, the brokerage name should be included within the caption, image overlay, video overlay, or text of the advertisement itself.
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 [email protected].