Module 8 Ma Licensing Law

Question 1

Who is the appointing authority for the members of the Ma Real Estate board?

Answer 1

The Governor

Question 2

How many people are on the Real Estate board and how long does there term last?

Answer 2

There are 5 People on the board for a term of 5 Years

3 of those people are full time real estate professionals who have been active for at least 7 years. The other two are members of the general public and don’t have to be agents.

They must have at least 4 meetings

Question 3

Powers of the Board

Answer 3

• Control the make up of the test questions
• Review of the licensing candidates
• Examination of records
• Conduct hearings and appeals
• Suspend Revoke, Refuse to Renew Licenses and reinstate

Question 4

If your license is suspended how long do you have to turn in your license?

Answer 4

7 Days

Question 5

The relationship between a buyer or a seller is with the broker and not the sales person or agent. True or False?

Answer 5

True the relationship is with the broker you are an agent of the broker working for the broker to assist the buyer or the seller.

Question 6

Are you allowed to have both your sales persons license and your brokers license at the same time (Yes or No)

Answer 6

No you can only hold one or the other if you have your sales persons license when you pass your brokers license you will be forced to surrender you sales persons license at that time.

Question 7

How long is a Real Estate license valid for?

Answer 7

2 years from your birthday

Question 8

Does a corporation need to have a brokers license?

Answer 8

At least one of the Partners of the corporation needs to hold a brokers license and that license must be in there own name not the name of the corporation.

Question 9

Eligibility for Licensing

Answer 9

• Paid all taxes
• Good moral standing
• Have you ever been arrested
• 18 Years old
• 40 Hours of Licensing
• Brokers Surety bond $5,000.00
• Working minimum number of 20 hours a week.

Question 10

If an owner broker passes away how long can someone run the company before having to get there brokers license

Answer 10

If the owner broker passes away a one year temporary license will be granted to give someone time to get a license or for the company to finish all transactions before closing the business.

Question 11

Can a trustee sell real estate that is in the trust that they are the trustee of with out the need of a real estate license (Yes or No)

Answer 11

Yes a trustee can sell any real estate that is in the trust that they are managing with out having to obtain a real estate license.

Question 12

Can a public officer (employee) sell real estate with out having a license (Yes or No)

Answer 12

Yes as long as they are not obtaining a commission.

Question 13

Can a power of attorney sell real estate with out a license (Yes or No)

Answer 13

Yes a power of attorney can sell real estate with out a license but can not Sign the deed.

Question 14

Can an attorney sell real estate with out obtaining a real estate license (Yes or No)

Answer 14

Yes an attorney can sell real estate with out a license as long as they are not accepting a commission in addition to their fee. If they are looking for a commission they must obtain a brokers license

Question 15

Can a bank or credit union how is acting as a fudusary sell real estate with out obtaining a license (Yes or No)

Answer 15

Yes a bank or credit union can sell real estate with out a license

Question 16

Statutory requirements governing activities of licensees

Answer 16

• Advertising
• Salesperson Ads
• Discriminatory Ads
• Broker Salesperson relationship
• Independent Contractor VS. Employee
• Disclosure/ Conflict of Interest
• Commissions
• Agreement between the Principle and the Broker
• Handling of Documents
• Present all Offers
• Distribute contracts to all parties
• Handling of Moneys
• Return of Deposits along with interest
• Net Listings - Define = illegal
• Maintenance of place of business
• Public display of all licenses
• Record Keeping
• Board inspections
• Legal Advice - Its illegal to recommend against use of attorney
• Out of State Property - Has to register the property with the state & there is a fee
• Registration and disclosure
• ## Apartment listing services requirements - The state no longer monitors these services but still monitors agents and brokers but not services like apartments.com

Question 17

What does the Sherman anti trust act govern?

Answer 17

Price fixing

Question 18

Define: Procuring Cause

Answer 18

The effect that brings about the desired result. Under an open listing the real estate professional who is the procuring cause of the sale receives the commission

Question 19

What 3 things changed as a result of Tristam’s landing vs Wait?

Answer 19

When a commission is due.

1. broker brings a ready willing and able buyer
2. A signed a contract to purchase which is signed by both parties
3. A closing must occur.

Unless a wrongful act is committed by the seller.

Question 20

Define: Designated agency

Answer 20

A process that accommodates an in house sale in which two different agents are involved. The broker designates one agent to represents the seller and one agent to represent the buyer.

Question 21

Define: Attachment

Answer 21

When a broker is entitled to a commission and the seller refuses to pay. A writ of attachment may be filed against the seller’s property.

Question 22

Masssachusetts Privacy and Security Laws:

Answer 22

Written information security program (wisp) in place to protect any personal information collected.