Massachusetts Real Estate Salesperson License
CORRECT 100%
RE Salesperson License requirements? - ANSWER 18 years old, 40 hour class, pass the exam, must
affiliate with a broker to practice and may not accept direct client payments
Broker's License requirements? - ANSWER 3 years salesperson experience, 40 hour class, pass the exam,
$5,000 bond and pay a fee.
What is MLS? - ANSWER Multiple Listing Service. It's a marketing tool used by Salespeople to show their
listings.
Difference between RE Salesperson and RE Broker? - ANSWER Salesperson works for a Broker. Broker has
at least 3 years experience, $5,000 Bond, 40 Hour Class and pass the Exam. Cannot hold both licenses at
the same time. Broker can operate independently, accept direct client payments and handle Escrow
Funds.
Define Realtor? - ANSWER It is National, not state and is optional. NAR (National Assoc. of Realtors)
Largest Trade Assoc. and one of the most powerful lobbying groups in North America. Pay a fee to join
your local chapter (MAR).
Also, if a Broker is a Realtor, all Salespeople/Agents associated with the office must be Realtors as well.
What is an Escrow Fund/Trust Accounts? - ANSWER 1. Special bank accounts for holding Client's deposits
to be handled by Broker only. 2. Brokers may have only one Escrow account.
3. Commingling is strictly forbidden.
4. No Salesperson Access.
5. Interest not mandatory but if yes the client must agree who gets it in writing. (Statute of Fraud)
6. Brokers must maintain Escrow Records (copies of checks, dates, transaction info) for 3 years which the
RE Board may inspect at any time.
7. Conversion of a deposit into commission requires written permission from both parties. If not, can
result in loss of license.
8. Court order needed to remove funds if there is a dispute.
, State Law -v- Federal Law? - ANSWER Fed=US/State=Massachusetts State law builds on Fed law and is
more specific. In a conflict, Fed law usually wins.
Who needs a RE License? - ANSWER Anyone who does any of the following for a fee: Advertises, holds
herself out as engaged in the biz of selling, renting, leasing, negotiation, exchanging, purchasing and
dealing in RE or options for RE.
Where do licenses come from? - ANSWER State Legislature creates the laws about licenses. The Board of
Registration of RE & Salespersons deals with issuing licenses and rule administration and enforcement.
The Board is part of the Division of Professional Licensure.
Why do we have licenses? - ANSWER To protect the public, for the public good. Much of the
Government's ability to regulate private transactions stems from Police Power which is the right of the
Gov to enact laws to protect the public.
Who makes up the Board of Registration of RE & Salespersons? - ANSWER - 5 Member Board est. in 1960
- Appointed by the Governor
- One is appointed Chairperson
- 3 are Brokers with at least 7 years experience
- 2 are not licensed, represent the public
- 5 year terms, no pay
- Meet 4 times a year with at least 3 of the Members present. Written records of meetings are available
to the public on Division of Pro Licensure's website
1099 -v- W2 Employee? - ANSWER 1099=Independent Contractor, paid by job or commission, set own
hours, can turn down work, etc, no taxes withheld, but may take many write-offs (Many Residential RE
Agents)
W2=Salaried of paid hourly, employer controls what and how you do (Commercial RE Agents), taxes
withheld by employers
What is FSBO? - ANSWER For Sale by Owner
, Types of RE Advertising? - ANSWER MLS, Open House, Trulia, Zillow, Neighbors, etc.
Define Qualified Buyer? - ANSWER Client who is ready, willing and able!
What is the average commission? - ANSWER NONE - ALWAYS NEGOTIABLE!!!!!
What is the basic RE Transaction? - ANSWER - Hired to list property
- Market/list on MLS, etc
- Buyer's contact you to see
- Show the property
- Offer submitted
- Inspection
- Contingencies
- Creation and signing of P&S, 5% of Sales Price is Deposited in Escrow Account. Finance Contingencies
apply here as well.
- Sale takes place (settlement/closing)
- You and buyer's agent will be paid
- Approximately 3-6 months average time
Rental commissions? - ANSWER Up to one month's rent
How often are RE Licenses renewed? - ANSWER 2 years from you next birthday. 12 hours of Continuing
Ed Classes must be completed before renewal.
What are the two types of Insurance carried by Brokers? - ANSWER Professional Liability Insurance
(errors and omissions insurance)-Provides protection against mistakes made by Brokers or Salespersons
providing RE Services to their clients. Human and Innocent mistakes happen...
General Liability Insurance
, Principal, Special Agent, Subagent? - ANSWER Principal=Client, hires Special Agent
Special Agent=Broker, hired and paid by Principal directly
Subagent(Agent's Agent)=Salesperson/Agent Broker pays you as a subagent working on their behalf. You
will be client's subagent and the Broker's agent
What is Real Property? - ANSWER The land, anything attached to the land, and all of the various rights
associated with ownership of the land. aka: Real Estate(just the land and property attached) , Realty or
Immovable Property.
What is Personal Property? - ANSWER Anything not attached to the Land or improvements on the land.
aka chattel or moveable property.
What is a Deed? - ANSWER Receipt for Real Estate. Ownership of property is transferred/conveyed using
a deed.
Grantor and Grantee? - ANSWER Grantor= gives the deed "or" - giving
Grantee=receives the deed "ee" - receiving
Bundle of Rights? - ANSWER Grouping of property rights that can be separately transferred. Rights
include: possession, exclusion, control, disposition and enjoyment
Land and Surface Rights? - ANSWER Land is the surface of the earth. Surface Rights often extend to
approx. 30 feet below the land's surface.
Improvements on the land? - ANSWER Anything permanently attached (directly or indirectly) to the land.
Ex. a house is an improvement.
Fixtures? - ANSWER Individual Improvements attached to the property, eg window blinds.
