Massachusetts Commercial Property Disclosures: Env, ADA, Zoning

Since Massachusetts achieved statehood on February 6, 1788, its commercial real estate framework has relied heavily on the "caveat emptor" (buyer beware) principle, though modern statutes have introduced several mandatory disclosures. While commercial landlords are not subject to the extensive consumer-protection disclosures required in residential leasing (like the §15B Statement of Condition), they face significant regulatory obligations regarding environmental contamination, building safety, and insurance information.

Official Law Citation: Massachusetts General Laws Chapter 21E (Massachusetts Oil and Hazardous Material Release Prevention and Response Act); MGL c. 93A (Regulation of Business Practices for Consumers Protection).

1. Environmental Disclosures (MGL Ch. 21E)

Massachusetts has strict environmental liability laws. Under MGL Chapter 21E (the Massachusetts Contingency Plan, or MCP), the current property owner can be held liable for hazardous waste contamination, regardless of who caused it.

• Phase I Environmental Site Assessment (ESA): While not legally required for every lease, it is standard practice for a commercial tenant to commission (or request from the landlord) a Phase I ESA before signing a lease. This report identifies potential environmental contamination risks.
• Activity and Use Limitations (AULs): If a property has a recorded AUL (a restriction on land use due to prior contamination), the landlord must disclose this. AULs are public record and recorded at the Registry of Deeds.
• Asbestos & Lead Paint: For commercial buildings, landlords must disclose known asbestos-containing materials (ACMs) under DEP and OSHA regulations. Failure to disclose known material defects can also trigger liability under MGL c. 93A.

2. Fire Insurance Disclosure (MGL c. 186, § 21)

A specific statutory requirement often overlooked in commercial leasing is the fire insurance disclosure.

• The Rule: Upon written request by a tenant, a landlord must disclose in writing within 15 days the name of the company insuring the property against fire loss, the amount of insurance, and the name of the person who would receive the loss payment.
• Applicability: This applies to both residential and commercial properties in Massachusetts.

3. ADA Compliance

The Americans with Disabilities Act (ADA) requires that commercial properties (places of "public accommodation") be accessible to people with disabilities.

• Landlord's Obligation: The landlord is generally responsible for ensuring the building's common areas (parking lots, entrances, lobbies, restrooms) are ADA-compliant.
• Disclosure: Landlords should disclose any known ADA non-compliance issues before the lease is signed, as failure to do so may shift liability and constitute an unfair business practice under MGL c. 93A.

Back to Massachusetts Commercial Lease Laws OverviewPreview unavailable.