Mass Real Estate Licensing Law Flashcards Preview

Real Estate Test > Mass Real Estate Licensing Law > Flashcards

Flashcards in Mass Real Estate Licensing Law Deck (5)
Loading flashcards...
1
Q

The Board of Registration of Real Estate Brokers and Salespersons

A

enforces the license law and is part of the Division of Professional Licensure, and is located at 1000 Washington Street Boston, MA 02118. You will often hear real estate agents refer to the Board of Registration as the “Real Estate Board.”

2
Q

About the Board

A

created in 1960, and is made up for 5 members. Each member has a 5-year term, with one term expiring each year. Three of the Board members must be brokers with at least 7 years of experience, and two members must be unlicensed and represent the public. One of the Board members is also appointed the Chairperson. Board members are unpaid, and must meet at least four times a year (with a quorum of at least three members present) at a location of their choosing. Written records of the meetings are made available on their website. Their budget comes from the State Budget, and any fees they collect go to the State Treasury.

3
Q

Broker bonds

A

are effectively insurance policies for escrow accounts. Every licensed broker, including corporations and inactive licensees, must provide the Board with a surety bond for $5,000. This bond is for the benefit of any person harmed by the loss of escrow funds caused by the broker; it is not insurance for the broker.

4
Q

Mandatory Agency Disclosure

A

Real estate agents must provide buyers and sellers of real estate the mandatory agency disclosure notice developed by the Real Estate Board. This notice discloses the relationship of the agent with the prospective purchaser or seller. The notice must be provided at the time of the first personal meeting for the purpose of discussing a specific property. All agency disclosure records and notices are subject to inspection by the Board.

5
Q

The board can suspend or revoke a real estate license for any number of reasons:

A
  • The license was obtained or renewed using false or fraudulent representation.
  • A licensee acted as an undisclosed dual agent.
  • A licensee did not disclose that they were the principal in a real estate transaction.
  • A licensee acted as a real estate agent while intoxicated.
  • Any failure to return client money within a reasonable period of time.
  • The payment of referral fees or real estate commissions to unlicensed persons.
  • The acceptance of an undisclosed rebate or commission on an expenditure by the principal (a.k.a. a kickback).
  • Commingling client money with business or personal funds.
  • Inducing a party to a real estate contract to break the contract for the personal gain of the licensee.
  • Failure to provide a copy of a real estate contract to one of the parties to the contract.
  • Failure to disclose a conflict of interest in writing.
  • Accepting a net listing (a listing where the commission is not specified).
  • Only accept listings where the commission is an explicitly agreed upon fee or a percentage of the sales price. You may also charge a “fee for services” for additional services rendered to the client.
  • Any violation of Massachusetts Fair Housing Law (the only automatic suspension).