MA Salesperson Exam Module 15: Real Estate Licensing Law Exam Study Guide Solutions

MA Salesperson Exam Module 15: Real Estate Licensing Law Exam Study Guide Solutions Board of registration of Real Estate Brokers and Salespersons - ANSWER-enforces the license law o Part of the Division of Professional Licensure o Made up on 5 members appointed by the governor § each member has a 5-year term. § one member's term expires each year § 3 of the members are brokers with at least 5 years of experience § 2 of the members represent the public § One member is appointed chair § Meet at least 4 times a year · With a quorum of at least 3 members present · Their budget comes from the state and fees they collect go to the state treasury You do not need a license to - ANSWER-§ Buying, selling, or renting a property for yourself § Lawyers and other people holding written powers of attorney · Lawyers are entitled to their broker's license. If someone is a licensed lawyer in MA, they can pay a fee to get their broker's license without any real estate experience, classes, or a test Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 2/6 § regular hourly or salaries employees of a company that engage in daily activities related to a property · property managers § public officers/employees performing official duties § auctioneers, appraisers, and the employees of lenders/insurance companies § persons acting under a court order, e.g. executors, administrators, or guardians § trustees biennially - ANSWER-licenses are renewed every 2 years on your birthday inactive licenses - ANSWER-can make a referral to active licensees and collect referral fee from agent states with full reciprocity to MA license - ANSWER-CT, GA, IA, NE, NM, PA, RI, NY states with limited reciprocity to MA license - ANSWER-DE, ID, KY, NH, NC, SC, SD, WA, WV MA is a physical location state - ANSWER-§ Out of state licensees are not permitted to perform real estate services in MA, but they may receive commission for transaction in MA so long as the services they performed on behalf of the client occurred in MA. cooperative state - ANSWER-states that permit out of state licensees to perform real estate services in the state if they enter into a written co-broker agreement with an in-state licensee for the transaction turf state - ANSWER-states that only permit out of state licensees to receive a referral fee Entities involved in Re (LLCs) - ANSWER-must have a broker's license and designate one of their officers as the broker of record, who must hold a broker's license practicing without a license - ANSWER-$500 fine for Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 3/6 blind advertising - ANSWER-salesperson may not advertise under their own name; they must include the name of the brokerage in any advertisements registration of the promotion sale of out of state properties - ANSWER-out of state properties must be registered with the Board by their developer, or at the developer's expense. The developer must note registration on their advertisements. Brokers who accept out of state property development listing must inform the board within 7 days of accepting the listing. Conflicts of interest - ANSWER-Agents must provide written disclosure to all parties of the transaction when they represent themselves (even indirectly), family (blood or marriage), or their business associates Agents may not lease or buy a property (even indirectly) from their own client without making a written disclosure to the client to say that they are leasing or buying the property Mandatory agent disclosure - ANSWER-§ Real estate agents must provide real estate buyers and sellers the mandatory agency disclosure notice developed by the Real Estate Board o Discloses the relationship of the agent with their prospective purchaser or seller Notice must be provided at the time of the first personal meeting for the purposes of discussing a specific property Seller's agent - ANSWER-· when a seller engaged the services of a listing broker, the seller becomes the broker's client. Broker and its subagents represen