The Basics Flashcards
Why do we need licenses?
To protect the public.
It insures you have a specific kind of knowledge.
When is a license required?
Any time you represent someone else in a real estate transaction & get paid for it (or plan to be paid).
What does the MA Board of Registration of Real Estate Brokers & Salespersons do?
They enforce licensing laws, issue licenses, handle license renewals, suspension, revocation and reinstatements.
What does “The Board of Registration” consist of?
2 unlicensed persons & 3 Brokers with 7+ years experience (one of these people is appointed as a chairmen).
They are appointed by the governor, they meet at least 4 times a year, they serve 5 year terms, and the positions are unpaid.
What is “The Board” a part of?
Part of the Division of Professional Licenses (DPL).
Reciprocity
Can transfer licenses to other states. (education wise; you still need to apply to that states board and you may need to pay a fee)
Salesperson licensing requirements
Must be at least 18 years old. Take a 40 hr. pre-licensing course. Pass the Exam. Pay licensing fee. Affiliate with a broker (work under a broker of record).
What can a salesperson not do?
May NOT accept direct direct client payments/listings.
Cannot handle escrow accounts.
Escrow
Holding account for clients money; things like deposits.
Broker licensing requirements
Must have a minimum of 3 years salesperson experience.
Must have worked a minimum of 25 hrs./wk.
Take a 40 hr. pre-licensing course.
Pass state exam.
Pay licensing fee.
Must be bonded for 5K.
What is the $5K bond for Brokers for?
It is a piece of paper (like a cert.) that says you can cash this bond at any time & it’s worth $5k to cover any mistakes you make w/ client money.
What can a Broker do that a Salesperson cannot do?
A broker can handle client money, take listings, and work independently.
Associate Broker
These people have a brokers license, but continue to operate under an employing broker. They have the sale authority of a salesperson. They cannot take listings or client money. They must STILL be bonded for $5K.
“REALTORS”
This is not a license designation, it’s a membership in the National Association of Realtors.
You pay an annual fee to join the local chapter and pledge to a code of ethics.
examples: Massachusetts Association of Realtors (MAR), Greater Boston Association of Realtors (GBAR)
Does one need to be in the “Realtors” group?
Not necessarily. If you work for a broker who is part of the group, you as a salesperson will need to be. If the broker is not in the group, then no one in the brokerage will be.