Free Massachusetts Real Estate Practice Exam Questions (April 2024) 40+

The Massachusetts Board of Registration of Real Estate Brokers and Salespersons is supposed to have five members at all times.

Every broker (not salesperson) in Massachusetts, whether a live person or entity, whether active or inactive, is required to file with the Board a surety bond of $5,000, for the benefit of any person harmed by the loss of funds held by the broker. A surety bond in plans terms is a way for a broker and the board to protect themselves. This bond is provided by a bonding company for a small fee paid by the broker and made payable to the state and collected by the Board.

Sally must remit a written request to the Real Estate Board requesting that the Board terminate the discipline. “The letter should include your name, current address, phone number, license number and docket or case number (if known). Upon receipt of your request, the Board must obtain your casefile from the Office of Investigations and then review the Consent Agreement or the Board's Final Decision to confirm that you have satisfied all the terms and conditions of the Consent Agreement or Final Decision. If compliant then the Board will send you a letter and shall update its database.” Per The Boards website on termination of suspensions.

In the state of Massachusetts, in order for a buyer-brokerage contract to be enforceable the agreement must be in writing.

When a real estate agent works as a facilitator, that agent assists the seller and buyer in reaching an agreement but does not represent either the seller or buyer in the transaction.

A licensee which was found to have obtained a license by fraudulent representation would be reasons for the board to suspend or revoke a license.

In Massachusetts, most people get a six-month redemption period after the sale or the taking to pay off the tax debt and keep the home.

Massachusetts Fair Housing Law is under Chapter 151 B.

Remember when a license is inactive it is voluntary. Meaning it is initiated by the salesperson or broker. Failure to turn in proof of continuing education would cause the license to be inactive because the salesperson or broker did NOT turn in or complete the appropriate paperwork.

If a prospective purchaser or seller declines to sign a notice of agency disclosure, the broker shall indicate the date the notice was given to them, that the person declined to sign it, and the reason for declining it (if any).

Under Federal Fair Housing law there are seven protected classes. Massachusetts law adds eight additional protected classes. The additional ones are: Age, Ancestry, Children, Genetic Information, Marital Status, Public and/or Rental Assistance, Sexual orientation, Veteran/Military Status, and Gender Identity.

Rent is legally due on the date specified in your lease or rental agreement (usually the first of the month). If someone doesn't pay rent when it is due, the landlord may begin charging a late fee. Under Massachusetts law, late fees, including interest on late rent, may not be imposed until the rent is 30 days late.

Under no circumstances can a Massachusetts salesperson be licensed with more than one Massachusetts broker.

If consensual dual representation occurs a broker shall request a prospective purchaser or seller to sign and date such notice, and provide the original to them and maintain a copy of all notices. The broker must keep the records of the notice for three years from the date on the notice.

If a broker accepts money from a client for ANY reason that broker must deposit the payment in an escrow account. From there it can be distributed accordingly or used as advised.

Under Massachusetts General Laws, Chapter 183, Section 55, A mortgage discharge document must be recorded within 45 days after the final payment.

The term of office of each member is five years, with one term expiring each year; members may be reappointed.

All individuals who hold an active Massachusetts real estate license are required to complete 12 hours of Board approved continuing education during each two year renewal period.

Unlike some states, in Massachusetts there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

The Massachusetts Board of Registration of Real Estate Brokers and Salespersons oversees real estate license law in Massachusetts.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

The Massachusetts Board of Registration of Real Estate Brokers and Salespersons is composed of three members which must be licensed brokers with at least seven years experience; and two members not licensed that represent the public.

Under agency law in Massachusetts Disclosed Dual Agency is legal but only with the consent of all parties to the transaction. A Disclosed Dual Agency is when the broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker represents each party.

None, all agents and brokers are required to complete required continuing education.

All compensation payable to salespeople MUST come from employing brokers only. Anything given to salespeople by a client must be accepted on behalf of the broker. So the statement “Money given to a salesperson directly from a client can be deposited directly into the salespersons account with the permission of the broker.” is NOT true about Massachusetts License Law.

Regarding real estate licenses reciprocity, Massachusetts has agreements with some states with special conditions. Here is the list: Colorado, Connecticut, Georgia, Iowa, Mississippi, Nebraska, New Mexico, Pennsylvania, Rhode Island, Tennessee, West Virginia

Massachusetts derives revenue from the sale of real estate through the sale of state excise tax stamps. They are typically $4.50-5.00 per $1000 of the sales price, although that depends on the county. Tax stamps are typically paid by the seller, although parties can agree otherwise.

Under Massachusetts License Law offering real estate or improvements as prizes in games of chance is a violation of license law.

The Massachusetts Board of Registration of Real Estate Brokers and Salespersons does not make the rules or laws that licensees must follow. Per a system of checks and balances the laws are not made by the board but by the state legislature.

ALL offers and counteroffers, written or verbal, must be brought to the client unless the agent holds the power of attorney. A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal).

Written agency disclosure must be given by the agent at the time of the first personal meeting to discuss a specific property or properties.

All individuals who hold an active Massachusetts real estate license are required to complete 12 hours of Board approved continuing education during each two year renewal period.

Massachusetts Consumer Protections Law is under Chapter 93 A.

Per Massachusetts Agency law: If a licensed broker finds a willing buyer for the seller and the seller initially signs and accepts the buyer's written offer and changes their mind the broker is still entitled to collect a commission.

The Massachusetts Real Estate Board shall suspend the license for at least 60 days.

In Massachusetts, all of the following are legal except a Net listing.

In Massachusetts, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks they must hold an active real estate license. Non-residents can in fact be licensed as agents if they file a written power of attorney with the Chair of the Board to accept legal summons issued to the non-resident.

All receipts and revenue collected by the Board go to The Massachusetts State Treasury.

The Massachusetts Board of Registration of Real Estate Brokers and Salespersons are appointed by The Governor.

The regulations of environmental hazards, dealing with hazardous waste are under Chapter 21 E.