Massachusetts Real Estate Salesperson
License Questions and Answers 100%
Pass
RE Salesperson License requirements? ✔✔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? ✔✔3 years salesperson experience, 40 hour class, pass the exam,
$5,000 bond and pay a fee.
What is MLS? ✔✔Multiple Listing Service. It's a marketing tool used by Salespeople to show
their listings.
Difference between RE Salesperson and RE Broker? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔- 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? ✔✔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? ✔✔For Sale by Owner
Types of RE Advertising? ✔✔MLS, Open House, Trulia, Zillow, Neighbors, etc.
Define Qualified Buyer? ✔✔Client who is ready, willing and able!
What is the average commission? ✔✔NONE - ALWAYS NEGOTIABLE!!!!!
What is the basic RE Transaction? ✔✔- Hired to list property
License Questions and Answers 100%
Pass
RE Salesperson License requirements? ✔✔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? ✔✔3 years salesperson experience, 40 hour class, pass the exam,
$5,000 bond and pay a fee.
What is MLS? ✔✔Multiple Listing Service. It's a marketing tool used by Salespeople to show
their listings.
Difference between RE Salesperson and RE Broker? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔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? ✔✔- 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? ✔✔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? ✔✔For Sale by Owner
Types of RE Advertising? ✔✔MLS, Open House, Trulia, Zillow, Neighbors, etc.
Define Qualified Buyer? ✔✔Client who is ready, willing and able!
What is the average commission? ✔✔NONE - ALWAYS NEGOTIABLE!!!!!
What is the basic RE Transaction? ✔✔- Hired to list property
