MA Real Estate Licensing Law Flashcards
Who make the laws?
The State Legislature makes the laws
Who enforcs the laws
Board of Registration of Real Estate Brokers and salespersons
Who makes up the board
Made up of 5 members all appointed by the governor
each member has a 5-year term; with one member’s term expiring each year
3 of which have at least 7 years of experience and two unlicensed members represent the public.
One is appointed the chairperson, must meet at least four times a year
Broker
Allowed to work for him or herself
can handle client money (aka escrow funds)
Salesperson
Must work under a broker as either an employee or an independent contractor, may not handle client money.
Broker Bond
Insurance for any person harmed if broker loses escrow funds.
Every licensed broker/corporatioin must provide surety bond for $5,000.
Escrow Accounts
Special accounts for holding client money, typically used by brokers to hold deposits on offers and purchase and sale contracts.
- Brokers must keep escrow funds in a seperate account from their business funds
- Sales person does not have access to these accounts
Escrow account note for MA
Brokers must maintain escrow reords for at least 3 years
those records must include all the information about money going into and out of the account
Licenses Law Points
- Must be renewed every two years on DOB
- Agents complete 12 hours of continuing education before renewing license
- Inactive Licensees may make their referrals to active licensees an recieve a referral fee
- ## Salesperson may recieve their brokers license after 3 years of work experience (at least 25 hours/week)
What states are reciprocity with MA license
Ful reciprocity = CT, GA, IA, NA NM, PA, RI, NY (Must have 2 years of exp)
Limited Reciprocity = CO, DA, Idaho, Kentucky, Maine, New Hamph, NC, SC, SD, WA, WV
MA = Physical location state
Means out of state licenses are not permittd to perform real estate services in MA, but may recieve a commision for atransaction in MA so lon as any services performed on behalf of client
Entities in Real Estate
must have brokers license
must designate one of their officers the broker of recrd
- if broker pases away entity may operate for up to a year
-if sole properietor passes away - board issues temporary license for one year
-Brokers must keep rental fee records for three years
Seller’s Agent
when seller engages the services of a listing broker, that seller becomes the broker’s client - the broker and subagents represent seller.
seller may authorize subagents to rep them
Buyer’s Agent
- When buyer engages the servics of a broker, that buyer becomes the broker’s client.
- Broker owes the buyer undivided loyalty, utmost care
Disclosed Dual Agent
A broker can work for both the buyer ans seller on the same property
