Massachusetts Real Estate Salesperson License EXAMS 100%
RE Salesperson License requirements? - ANSWER18 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? - ANSWER3 years salesperson experience, 40 hour class, pass the
exam, $5,000 bond and pay a fee.
What is MLS? - ANSWERMultiple Listing Service. It's a marketing tool used by Salespeople to show
their listings.
Difference between RE Salesperson and RE Broker? - ANSWERSalesperson 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? - ANSWERIt 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? - ANSWER1. 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? - ANSWERFed=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? - ANSWERAnyone 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? - ANSWERState 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? - ANSWERTo 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? - ANSWER1099=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? - ANSWERFor Sale by Owner
Types of RE Advertising? - ANSWERMLS, Open House, Trulia, Zillow, Neighbors, etc.
,Define Qualified Buyer? - ANSWERClient who is ready, willing and able!
What is the average commission? - ANSWERNONE - 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? - ANSWERUp to one month's rent
How often are RE Licenses renewed? - ANSWER2 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? - ANSWERProfessional 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? - ANSWERPrincipal=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? - ANSWERThe 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? - ANSWERAnything not attached to the Land or improvements on the
land. aka chattel or moveable property.
What is a Deed? - ANSWERReceipt for Real Estate. Ownership of property is transferred/conveyed
using a deed.
Grantor and Grantee? - ANSWERGrantor= gives the deed "or" - giving
Grantee=receives the deed "ee" - receiving
Bundle of Rights? - ANSWERGrouping of property rights that can be separately transferred. Rights
include: possession, exclusion, control, disposition and enjoyment
Land and Surface Rights? - ANSWERLand is the surface of the earth. Surface Rights often extend to
approx. 30 feet below the land's surface.
Improvements on the land? - ANSWERAnything permanently attached (directly or indirectly) to the
land. Ex. a house is an improvement.
Fixtures? - ANSWERIndividual Improvements attached to the property, eg window blinds.
Air Rights? - ANSWERRights to the space above the land. Vertical Interests may be sold or leased
separately from the surface rights. Up to 80 feet now. 80-500 feet belong to FAA. Used to be "heaven
to hell" Cuius est solum..."
Mineral Rights? - ANSWERRight to the space below the land along with any natural resources such
as oil, precious metals, etc. Solid Mineral Rights and Liquid Mineral Rights.
