The Basics Flashcards
Salesperson License
Must be 18 years old, take a 40-hour class, pass the state exam, and pay a fee (currently $103-$150).
Must affiliate with a broker to practice real estate.
May not accept direct client payments.
Broker’s License
Must have 3 years of experience as a salesperson, take a 40-hour class, pass the state exam, be bonded for $5000, and pay a fee.
Can do everything that a real estate salesperson can do, plus they may operate independently, accept direct client payments, and handle escrow funds (client deposits).
National Association of Realtors (NAR)
Established in 1908, You become a realtor by paying a fee to join your local chapter of the Massachusetts Association of Realtors (MAR) after you’re licensed as a Massachusetts real estate salesperson or broker.
Police Power
the right of the government to enact laws to protect the public.
State Legislature
creates the laws about license (which are permanent unless otherwise stated).
The Board of Registration of Real Estate Brokers & Salespersons
deals with issuing licenses, and rule administration and enforcement.
Division of Professional Licensure
Five Board Members
One Chairperson
Three Brokers with at least 7 years experience
Two unlicensed public members
5 year terms without pay, meet 4 times per year, at least three must be present with written record and elected by governor
W2 vs 1099
W2= employee 1099= independent contractor
two types of Brokers Insurance
professional liability insurance (aka “errors and omissions insurance”)- provides protection against mistakes made by a broker or salesperson while providing real estate services to their clients.
General liability insurance- provides coverage for personal or property damage that might occur at the brokerage or during showings (e.g. a client slipped and fell on the office stoop).
Principal, Special Agent, and Subagent
Principal- client
Special Agen- broker
Subagent- salesperson (subagent to the client, broker’s agent)
