Chapter 14: Massachusetts Licensing Law

Feeney v. Dell, 454 Mass.192 (2009)

In a civil action challenging an order compelling arbitration pursuant to the terms of a consumer contract, this court ordered that the plaintiffs' complaint be dismissed without prejudice, on the ground that the plaintiffs' allegation that the defendant had erroneously collected sales tax attributable to the purchase of computer service contracts fell outside "the conduct of trade or commerce" as those terms are used in G. L. c. 93A, § 2 (a).

Insects, Rodents and Skunks. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

In a dwelling with one dwelling unit, the occupant is responsible for exterminating all rodents, cockroaches, skunks and insect infestation and maintaining the unit free of these, provided, however, that the owner shall maintain any screen, fence or other structural element needed to keep rodents and skunks from entering the dwelling; in a dwelling consisting of two or more units or in a rooming house the owner is responsible. [410.550] As of 7/95, pesticide applicators or their employers must give at least 48 hours' written notice to the occupants prior to any routine commercial application of pesticides for the controlofindoorhouseholdorindoorstructuralpests. Thenoticemustinclude information such as when the application will take place and what products will be used (410. 550). The owner is responsible for providing screens for certain windows and doors on the first four floors of a building. [410.551 and 410.552]

Persons and organizations required to be licensed. (II. LICENSING REQUIREMENTS - 87PP)

Individual brokers or salespersons representing others, for a fee, in a real estate transaction. Business organizations representing others, for a fee, in a real estate transaction.

Duclersaint v. Federal National Mortgage Association, 427 Mass. 809, 696 NE2d 536 (1998)

"A practice may be deceptive if it reasonably could be found to have caused the plaintiff to act differently than he otherwise would have acted. However, a good faith dispute as to whether money is owed, or performance of some kind is due, in not the stuff of which a c.93A claim is made."

"Piersv. WheelerandTaylor,Inc.,8 Mass. Law Reporter 410 (1998)

"Representing to a buyer of a home that the property is free of lead-contaminated paint without verifying that fact constitutes willful misconduct subjecting the seller and the seller's real estate agent to multiple damages under c.93A." Testing must be done by inspectors licensed by the Childhood Lead Poisoning Prevention ProgramoftheDepartmentofPublicHealth. Theleadmustbeabatedifdangerouslevelsare found during an inspection done by a private lead inspector or during a routine code violation inspection done by a local health inspector from the city or town at the request of the occupant. Low-risk abatement of lead paint (defined in 460.175) may be performed by owners or owners' agents after a one-day course, exam, and certification required by the Department of Public Health's Childhood Lead Poisoning Prevention Program. Call 1-800-532-9571 to find out more. Further information is available at: www.mass.gov/dph/clppp/mod.htm. [460.420] High-risk abatement must be performed by deleaders licensed by the Department of Labor and Worforce Development's Division Occupational Safety. To find out more, call the agency at 617-626-6960 or 1-800-425-0004 (MA only) or visit their website at www.mass.gov/dos/lead.

Glickman v. Brown, 21 Mass. App. Ct. 229 (1985)

"Sellers should not be allowed to misrepresent the truth simply because they have not made reasonable efforts to ascertain it. We hold (if there were any doubt about it) that a negligent misrepresentation of fact the truth of which is reasonably capable of ascertainment is an unfair and deceptive act or practice within the meaning of c. 93A, Section 2(a)."

PLEASE NOTE: It is important to thoroughly review the complete list of MEPA thresholds for applicability to a particular proposal.

(4)Section17. Thedepartmentofenvironmentalprotection,inthissectioncalledthe department, shall consult with and advise the officers of towns and persons having or about to have systems of water supply, drainage or sewerage as to the most appropriate source of water supply and the best method of assuring its purity, or as to the best method of disposing of their drainage or sewage with reference to the existing and future needs of other towns or persons which may be affected thereby. It shall also consult with and advise persons engaged or intending to engage in any manufacturing or other business whose drainage or sewage may tend to pollute any inland water as to the best method of preventing such pollution, and it may conduct experiments to determine the best methods of the purification or disposal of drainage orsewage. Towns,districtsandpersonsshallsubmittosaiddepartmentforitsadviceand approval their proposed system of water supply or of the disposal of drainage or sewage, and no such system shall be established without such approval. All petitions to the general court for authority to introduce a system of water supply, drainage or sewerage shall be accompanied by acopyoftherecommendation,adviceandapprovalofsaiddepartmentthereon. The department may after a public hearing require a town, person, district or water company to make such improvements relative to any existing treatment, works or system of water supply as in its judgment may be necessary for the protection of public health. In this section the term "drainage" means rainfall, surface and subsoil water only, and "sewage" means domestic and manufacturing filth and refuse.

Rent Control.

(No longer a Law in Massachusetts) Any town or city with a population of 50,000 or more may declare a housing emergency and adopt rent control laws. a. Purpose of rent control. 1) To freeze rents. A six-month rollback period is required. 2) To regulate evictions. 3) To establish fair rents. b. De-control. Municipalities may modify the rent control law by de-controlling units when they become vacant.

H. Conflicts of Interests (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

(a) A broker or salesperson must act honestly and ethically and in the best interests of their client at all times. (b) A broker or salesperson shall not buy, sell, rent, mortgage, or acquire any interest in, or represent a client in the buying, selling, renting or exchange of real property in which the broker or salesperson or his/her kin has a personal financial interest unless the broker or salesperson shall fully disclose in writing to all parties to the transaction the nature of his/her interest and unless the parties shall provide the broker or salesperson with written acknowledgment of such disclosure. (c) A broker shall not take an option, either directly or indirectly, upon real property for the lease or sale of which the broker has been approached by the owner to act as a broker without first disclosing that such broker is now a prospective purchaser or lessor and no longer acting as a broker for the owner. (d) A broker or salesperson shall not accept a "net" listing from an owner or landlord for the sale or rental of real property in which the commission is unspecified. (e) Conveying Offers. All offers submitted to brokers or salespeople to purchase or rent real property that they have a right to sell or rent shall be conveyed forthwith to the owner of such real property.

RELATIONSHIPS WITH REAL ESTATE BROKERS AND SALESPEOPLE:

(a) A real estate broker or salesperson shall provide to a prospective purchaser or seller of real estate a notice developed and approved by the board which clearly discloses the relationship of the broker or salesperson with the prospective purchaser or seller of the real estate. The notice, developed by the Board, shall be provided to a prospective purchaser or seller at the time of the first personal meeting between the prospective purchasers or seller and the broker or salesperson for the purpose of discussing a specific property. (1) A broker or salesperson shall request a prospective purchaser or seller to sign and date such notice, provide the original to the prospective purchaser or seller and maintain a copy with their records for a period of three years from the date on the notice. The broker or salesperson must also sign the notice, indicate their license status as either a broker or salesperson, provide their license number and date such notice. (2) If a prospective purchaser or seller declines to sign the notice the broker or salesperson shall make a notation indicating the date the notice was given to the prospective purchaser or seller and that the prospective purchaser or seller declined to signit. Thebrokershallmaintainsuchnoticeforaperiodofthreeyearsfromthedateon the notice. (3) Nothing herein shall require written notice to each prospective purchaser or seller who comes to an open house showing of real property provided, however, the broker or salesperson, by sign, poster, distributed listing literature or property descriptionformconspicuouslydisclosesanypre-existingagencyrelationship. Where the listing literature or property description form is distributed at an open house the written disclosure of the agency relationship therein shall be more conspicuous than any other written material. (4) All such records and notices are subject to inspection by the Board or its agents. (b)Consensualdualagencydisclosure. Thissectionappliestorealestatebrokersor salespeople engaged in the purchase or sale of land with a building intended for use as a one to four unit residential dwelling or the purchase or sale of land on which a building is intended to be constructed for use as a one or two unit residential dwelling. A real estate broker or salesperson may act as an agent for both a seller and prospective purchaser of real estate provided that the broker or salesperson obtains informed writtenconsentfromboththesellerandtheprospectivepurchaser. Therealestate broker or salesperson shall provide a written consent form which shall clearly state that the broker or salesperson will be representing both the seller and prospective purchaserinthepurchaseandsaleofrealproperty. Theconsentformmustalsostate that a dual agent assists the seller and buyer in a transaction but shall be neutral with regard to any conflicting interest of the seller and buyer. Consequently, the consent form must state that a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and the duty to account for funds. Theconsentformmustprovidethatmaterialinformationreceivedfromeither client that is confidential may not be disclosed by a dual agent, except: (1) if disclosure is expressly authorized; (2) if such disclosure is required by law; (3) if such disclosure is intended to prevent illegal conduct; or (4) if such disclosure is necessary to prosecute a claim against a person represented or to defend a claim against the broker or salesperson. Lastly, the consent must state that the duty of confidentiality shall continue after termination of the brokerage relationship. A broker or salesperson shall obtain the signature of the seller or prospective purchaser on one or more of such consent forms provide the original forms to the seller and prospective purchase and maintain a copy with their records for a period of three years fromthedateontheform. Thebrokerorsalespersonmustalsosigntheconsentform, indicate their license status as either a broker or salesperson, provide their license number and date such form. Nothing herein shall require the seller and prospective purchaser to sign the same consent form.

Client Funds: (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

(a) Escrow Accounts(Earnest Money)- Unless otherwise agreed to in writing by the parties in transactions involving the sale, purchase, renting or exchange of real property, all money of whatever kind and nature paid over to a real estate broker to be held during the pendency of a transaction shall be immediately deposited in a bank escrow account or trust account and such broker shall be responsible for such money until the transaction is either consummated or terminated, at which time a proper account and distribution of such money shall be made. An escrow account is an account where the broker deposits and maintains the money of other parties in a real estate transaction and such broker has no claim to such money. An escrow account may be interest or non-interest bearing but where it is interest bearing the broker must make a proper account of such interest at either the consummation or termination of the transaction. (b) Record Keeping. Every broker shall keep a record of funds deposited in his/her escrow accounts, which records shall clearly indicate the date and from whom the broker received the money, date deposited along with the source of the money and check number, date of withdrawal with the name of the person receiving such withdrawal, and other pertinent information concerning the transaction and shall clearly show for whose account the money is deposited and to whom the money belongs. Every broker shall also keep a copy of each check deposited into and withdrawn from the escrow account for a period of three years from the date of issuance. All such funds and records shall be subject to inspection by the Board or its agents. (c) Salespersons Prohibited from Holding Funds. A real estate salesperson or broker engaged by another broker shall immediately turn over all deposit money or other money received to such employing broker. The mixing of client funds in other accounts other than the escrow or interest bearing accounts is considered commingling. No salesperson shall at any time hold client funds.

(5. Apartment Rentals: 254 CMR 7:00)

(a) Notice To Prospective Tenants. Brokers and salespersons engaged in renting real property, whether by written agreement or not, shall provide each prospective tenant with a written notice which states whether the prospective tenant will pay any fee for such service, the amount of such fee, the manner and time in which it is to be paid and whether or not any fee or any portion thereof will be payable by the tenant if a tenancy is not created. This written notice must be given by the real estate broker or salesperson at the first personal meeting between the broker or salesperson and a prospective tenant. It must be signed by the real estate broker or salesperson, contain the license number of such broker or salesperson, be signed by the prospective tenant and contain the date such notice was given by the broker or sales person to the prospective tenant. Where a prospective tenant declines to sign. such written notice the real estate broker or salesperson must note on such written notice the tenants name and the refusal to sign such notice. (b) Record Maintenance and Inspection. A copy of the written notice referred to in 254 CMR. 7.00 shall be maintained by the real estate broker or salesperson for a period of three years from the date on which the notice was provided to the prospective tenant. Real estate brokers or salespersons shall furnish the notice to the board, its investigators or other agents upon request. (c) Brokers shall maintain all rental listings and written documents that demonstrate the availability of an apartment at the time it is advertised for rental for a period of three years from the date on which such apartment is rented. (d) Brokers shall maintain a copy of any check, money order and written cash receipt for any fees, deposits or payments made by a prospective tenant or actual tenant for a period of three years from the date of issuance. Brokers shall also maintain a copy of any check issued on an escrow account over which they have issuing authority for a period of three years from the date of issuance. (e) Any advertisement concerning the availability of an apartment shall disclose in print no smaller than that for the apartment itself that "The apartment advertised may no longer be available for rental". (f) Fees for Service. No real estate broker shall charge any fee to a prospective tenant unless a tenancy is created or in those cases where no tenancy in real property is created unless the prospective tenant has agreed in writing to pay such a fee. Note: Under a broker's supervision, an unlicensed employee of a real estate agency may rent apartments owned by the broker for a small fee.

Instructor Qualification. (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

(a) Requirements To Become An Instructor. No person may act as an instructor of the salesperson or broker curriculum in any authorized real estate school unless such person verifies to the Board satisfaction of the requirements established in 254 CMR 4.00(7)(a)1. through 4. (1) Instructors must hold a current brokers license issued by the Board. (2) Instructors must have a minimum of two years work experience as a real estate broker involving at least 25 hours per week. (3) Instructors must have co-taught or audited the curriculum in an authorized school before they may teach it. (4) Instructors must have a minimum of 30 hours of instruction in an instructor training program which has been approved by the Board. (b)IssuanceofInstructorAuthorization. TheBoardmayissueauthorizationtoactasan instructor to any person who has satisfied the requirements of 254 CMR 4.00(7)(a)1. through 4 or the equivalent in lieu thereof as determined by the Board. (c) Use of Specialists. Instructors may employ specialists to teach particular portions of the salesperson or broker curriculum and such specialists need not obtain authorization from the Board. Specialists may not be employed to teach the entire curriculum.

Individual Real Estate Broker's License (II. LICENSING REQUIREMENTS - 87PP)

. a. Obtain a salesperson's license. b. Be "actively associated," (i.e. work at least twenty-five hours per calendar week) for three years with a licensed broker. Rule 2.03(16). Note: Change of licensure Requirements as of June 1, 2011. Please refer to pg. 14-17. c. Apply for a license within two years after completion of apprenticeship. d. Complete a forty-classroom hour, approved course. 40 hours required as of June 1, 2011. e. Pass a written examination. f. File a $5,000.00 surety company bond.

Lighting and Electrical Facilities (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

. Every room other than the kitchen must be equipped with a minimum of either two separate wall-type convenience outlets or one electric light fixture and one wall-type outlet. [410.250] Each kitchen must be furnished with a minimum of one electric light fixture and two wall-type convenience outlets. [410.251] Every room containing a toilet, bathtub or shower must be equipped with a minimum of oneelectriclightfixture. [410.252] Electric light fixtures with switches must be located such that every laundry, pantry, foyer, hallway, stairway, closet, storage space, cellar, porch, exterior stairway and passageway are adequately lit for safe and reasonable use by the occupants. [410. 253(A)] The owner shall provide appropriate bulbs in all required light fixtures located in common areas. [410.253(B)] The owner of a dwelling containing more than one dwelling unit shall provide and pay for light at all times for interior passageways, hallways and stairways intended for use by the occupants. In a dwelling with three or fewer dwelling units the light fixtures used to illuminate a common hallway may be wired to the electric service of a dwelling unit on the same floor and the occupant may be responsible for paying for such service if it is part of a rental agreement. [410.254(A) (B)] No wiring shall lie under any floor cover nor shall it extend through a doorway, window or any other opening. [410.354]

Purpose (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

. In order to provide the real estate education that can qualify individuals for licensure as real estate brokers or salespersons or provide continuing education a real estate school must be authorized by the Board.

Examinations Licensure 254 CMR 2.00

. No broker or salesperson license shall be issued to any individual unless such individual satisfactorily passes a written examination conducted by the Board or its agent. Prior to taking the examination applicants must submit certification to theBoardthattherequirededucationhasbeencompleted. Thiscertificationshallbe valid for a period not to exceed 24 months following the date on which the education was completed. Any applicant who is an attorney at law in good standing of this Commonwealth shall not be required to take such examination.

Questionnaire (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

. Submitted to the Board by the broker on behalf of the owner/developer.

Installation and Maintenance of Facilities(Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

. Theownermustadheretoaccepted procedures and standards such as the state plumbing and electrical codes when installing plumbing, heating and electric facilities and appliances and must maintain them free from leaks and obstructions. [410.351] The occupant must adhere to accepted procedures and codes when installing washers, dryers, dishwashers, disposals, refrigerators, stoves and electrical fixtures and maintain them free from leaks and obstructions. [410.352(A)] The occupant of a dwelling is responsible for maintaining all toilets, washbasins, sinks, showers, bathtubs, stoves, refrigerators and dishwashers in a clean and sanitary fashion. The occupant is also responsible for using these facilities and appliances properly and with care. [410.352(B)]

254 CMR 6:00: Promotional Sales of Out of State Real Property (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

1. Application for approval by the Board. a. Filed by the broker. b. Filing fee paid by the developer. c. Prohibition on Broker Sales Activity. No broker shall offer for sale in the Commonwealth an interest in real property which is located in a land development of another state unless the owner or developer of such land development registers such property with the Board.

Persons Exempt or Partially Exempt from Requirements. (II. LICENSING REQUIREMENTS - 87PP)

1. Attorneys at law are exempt from pre-licensed and continuing education ,testing and apprenticeship requirements. 2. Applicants who have completed a course in Real Property at an accredited Massachusetts law school are exempt from course requirements.

Prohibited Advertising. Rule 2.04. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Blindadvertising,i.e.,onewhichcontainsonlyapostofficeboxnumber,telephone number or street address. 2. Salesperson advertising. Salespersons are prohibited from advertising under their own name, except for property, which they own. 3. Discriminatoryadvertising.

Display of License. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Brokers are required to display their license conspicuously in their principal place of business and branch offices. 2. Salesperson's licenses are requiredtobepubliclydisplayed.

Distinction between a broker's license and a salesperson's license. (II. LICENSING REQUIREMENTS - 87PP)

1. Brokersmaybeself-employed. 2. Salespersons must work under the direct supervision of a broker. 3. Salespersons can receive commission only from a broker.

Regulations for the Conduct of Business. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Business name. A business or trade name must be registered with the board, and a copy of the business certificate issued by the town or city where the business is located must be sent to the board. 2. Broker employees. The business address of a broker who is employed by another broker must be shown on the broker employee's license. Rule 2.03 :( 9). 3. Two or more brokers at one address. When two or more brokers share the same address, the board must be informed of their business relationship. Rule 2.03 :( 10). 4. Notice of change of business address. 87VV and 87YY. Licensees are required to notify the board in writing of a change of business address. Brokers will be issued a new license for the new business location.

Commissions. 87RR. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Commissionsarepayableonlytolicensedbrokers. 2. Personsarebarredfromcourtactiontorecoverabroker'scommissionunlesstheywere licensed brokers at the time the services were performed. 3. Propertymanagersarenotentitledtoacommissionforsellingaclient'spropertyunless they are licensed real estate brokers. Rule 2.03 :( 18).

Nonresident License Requirements. 87WW. Rule 2.03 :(6). (II. LICENSING REQUIREMENTS - 87PP)

1. Complywithsamerequirementsasresidents. MaintainaplaceofbusinessinMassachusettsorinhisorherownstate. 3. Fileapowerofattorney,appointingthechairmanoftheBoardtoacceptlegalserviceof process in suits against the non-resident licensee. 4. Reciprocity. Non-residents licensed in other states may be exempted from the examination requirements provided a similar exemption is extended to Massachusetts's licensees.

License Term and Renewal. 87XX. Rule 2.03 :(7). (II. LICENSING REQUIREMENTS - 87PP)

1. Individuallicense. a. Original license. Two years from licensee's next birthday after issuance. b. Renewal license. Every two years on the licensee's birthday. c. Business (CSAP) licenses. Valid for two years from date of issue and are renewable every two years. 2. Business(CSAP)licenses. a. Original license. Two years. b. Renewal license. Every two years.

Q. Unfair Inducements. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Inducing a party to break a real estate contract or lease for personal gain. 2. Engaging in blockbusting. 3. Making a substantial misrepresentation.

Handling of Moneys. Escrow Accounts. Rule 2.05 (1), (2), and (8). (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Money held for others must be deposited into a bank escrow account. 2. Escrow account may be interest bearing. 3. Client's money must be retained in the account until the transaction involved is consummated or terminated and proper account made. Rule 2.05 :( 1). 4. Escrow accounts are subject to inspection by the board. Rule 2.05 :( 8).

Persons or organizations not required to be licensed. 87QQ. (II. LICENSING REQUIREMENTS - 87PP)

1. Persons or their employees dealing with their own property. 2. Persons dealing in real estate when performing some official actas required by their office or profession, such as an auctioneer, stockbroker, attorney at law, sheriff, administrator, executor, trustee, guardian, conservator or other fiduciary acting under a will or court order. 3. Apropertymanager,orthepropertymanager'sregularemployees,actingundera management contract, unless paid an additional fee for selling the property. 4. Astateorfederallycharteredbank,creditunion,mortgagecompany,orinsurance company, or its regular employees when acting as a fiduciary or for itself in negotiating a mortgage or seeking to acquire, lease or rent real estate for its own use.

Handling of Documents by Licensees. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Purchase and sale agreements. Licensees are required to give to both buyer and seller a copy of the purchase and sale agreement. 87AAA (i). 2. Offers. All offers obtained by brokers and salespersons must be immediately conveyed to the owner. Rule 2.05(11).

Apartment Listing Service Requirements. Rule 3.03. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

1. Purpose. To protect the public from being harmed as a result of the activities of rental listing services, which charge fees for providing apartment listings? 2. Customerassurances. a. That the listings are legitimate. b. That the listings conform to the customer's requirements. c. That the listings are currently available to renters.

Maintenance of Place of Business. 87VV and 87YY. Rule 2.03 :( 9). (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Resident licensees must maintain a place of business in Massachusetts. 2. Non-resident broker licensees are not required to have a place of business in Massachusetts provided they are licensed in their own state and have a place of business in their own state.

Qualifications for Licensing. 87SS. (II. LICENSING REQUIREMENTS - 87PP)

1. Salesperson'sLicense. a. Be at least eighteen years of age. b. Demonstrate good moral character. c. Complete a forty-classroom hour, approved course. --

Broker/Salesperson Relationship. 87RR, 87VV and 87YY (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

1. Salespersonrequirementsandlimitations. a. May be employed by only one broker at a time. b. A salesperson shall display a copy of their license in a conspicuous location that is 2. readily observable to the general public. c. May perform all the functions of brokers, including the completion of a purchase and sale agreement with the broker's approval. d. No salesperson shall also be licensed as a broker nor shall any broker be licensed as a salesperson. Note: A Salesperson acting as a broker can be subject and penalized by a per-violation fine. e. A licensed salesperson must be engaged by a licensed broker and a licensed salesperson shall not conduct his own real estate business. f. May be paid a fee only by a broker. Note: A licensed salesperson may legally accept a bonus commission for services from the salesperson's broker and if the broker refuses to pay the salesperson's share of a commission, the salesperson may sue the broker to collect. g. Must notify the board of any change of business address.

Documentary Stamps (Excise Tax or Deed Tax Stamps). Mass. G.L. Chap. 64-d.

1. Seller pays for the stamps. 2. Stamps are affixed only to deeds. 3. Rate is $2.28 per $500 or any part of $500. 4. No stamps required if sale price is under $100. 5. Stamps are based upon the purchase price less the value of any liens or encumbrances taken over or assumed by the buyer. 6. The validity of the deed is not impaired by the failure to affix the required stamps. G.L. Chap. 64-d, Section 6-a.

Property (ad valorem) Taxes. See Chapter 6, Page 4.

1. Taxes are calculated on a fiscal year, which runs from July 1 to June 30. 2. Two tax payment plans are permitted at option of the city or town. a. Semi-annual (Nov. 1 and May 1). b. Quarterly (Aug. 1, Nov. 1, Feb. 1, and May 1) based upon a fiscal year, which runs from July 1 to June 30. 3. Tax abatement (reduction) procedure. a. File "Application for Overvaluation of Real Estate Tax" within thirty days of the mailing of the tax bill. b. Note: The amount of unpaid taxes due on a parcel of real estate may be determined by checking the records of the municipality's tax assessor. c. Appeal to state Appellate Tax Board and from there to the superior court. 4. Tax Exemptions and Assistance. a. 1) 2) 3) b. 1) 2) Basis for qualification for tax assistance programs. Age. Infirmity. Poverty level. Other persons eligible for exemptions. Blind persons. Disabled veterans. 5. Rights and obligations of tax sale purchasers. a. Purchaser must record a deed within sixty days after the sale. b. Within six months after the tax sale, the purchaser must accept payment of taxes plus 12% interest and allow the previous owner to redeem title. c. After the six-month period, the previous owner's right to redeem will continue until the purchaser petitions the land court to terminate it. d. Until the redemption period has terminated, the buyer has no right to possession.

Purpose of Licensure 254 CMR 2.00

254 CMR 2.00 sets forth the application procedures, examination, experience, good moral character requirements for licensure.

Surety Bonds. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

876TT. Rule 2.03 :( 4). Terms and Conditions. Please refer to page 59 of this chapter 1. Amount. $5, 000. 00. a. Determined by statute. b. No changes permitted. 2. Surety on the bond. Surety Company or two personal sureties. 3. Term of bond. Continuous until cancelled by surety. 4. Payment. Made to aggrieved persons for loss resulting from misuse of client's money. 5. Procedure to recover on the bond. Civil court action. 6. The bond does not insure the broker for professional liability claims.

Net Listings. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

87AAA (l). Rule 2.05 :( 12). The acceptance of a net listing from an owner or landlord for the sale of real estate is prohibited.

Disclosure/Conflict of Interest. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

87AAA. Rule 2.05. To avoid a conflict of interest, licensees are required to disclose their interest or that of their relatives and have it acknowledged in the following situations. 1. When acting in the dual capacity of broker/ sales person and undisclosed principal in the same transaction. 87AAA (b). 2. When directly or indirectly buying property listed with the licensee. Rule 2.05(3). 3. When buying or selling property for a client in which the licensee has an interest. Rule 2.05 (5 and 6).

Jurisdiction (VI - MASSACHUSETTS DEPARTMENT OF ENVIRONMENTAL REGULATIONS)

: Projects requiring a state environmental license or permit, or funding.

Applicability (VI - MASSACHUSETTS DEPARTMENT OF ENVIRONMENTAL REGULATIONS)

: Proposed projects are subject to Massachusetts Environmental Policy Act (MEPA) review if they equal or exceed the MEPA thresholds. Examples of threshold activities include: Alteration of 25 or more acres of land. Alteration of designated significant habitat, and/or taking of endangered or threatened species or species of special concern. Alteration of coastal dunes, barrier beaches, or coastal banks; alteration of 500 ft. of fish run or inland bank; alteration of 1,000 s.f. of salt marsh or outstanding resource waters; alteration of 5,000 s.f. of bordering or isolated vegetated wetlands; new or expanded fill or structure in a velocity zone or regulatory floodway; alteration of one-half acre of other wetlands. Projects proposed within an Area of Critical Environmental Concern (ACEC). See 301 CMR 11.03: Review Thresholds for a complete discussion of these thresholds.

SELLER'S AGENT

A Seller can engage the services of a real estate agent to sell his property (called the listing agent) and the real estate agent is then the agent for the seller who becomes the agent's client. This means that the real estate agent represents the seller. The agent owes the seller undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provide, however, that the agent must disclose known material defects in the real estate. The agent must put the seller's interests first and negotiate for the best price and terms for their client, the seller. (The seller may authorize sub-agents to represent him/her in marketing its property to buyers, however the seller should be aware that wrongful action by the real estate agent or sub-agents may subject the seller to legal liability for those wrongful actions)

Brokers Notice to Board. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

A broker acting on behalf of an owner or developer of an out of state real property development shall notify the Board in writing of such status within seven days of accepting the client.

Brokers Notice to Board. (4. Promotional Sales of Out of State Real Property: 254 CMR 6:00)

A broker acting on behalf of an owner or developer of an out of state real property development shall notify the Board in writing of such status within seven days of accepting the client.

Advertising. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

A broker shall not advertise in any way that is false or misleading. (a) Broker Identification. No broker may advertise real property to purchase, sell, rent, mortgage or exchange through classified advertisement or otherwise unless he/she affirmatively discloses that he/she is a real estate broker. No broker shall insert advertisements in any advertising publication or other means where only a post office box number, telephone, facsimile, electronic mail number or street address appears. All advertisements shall include the name of the real estate broker. Note: When advertising property, a brokerage firm MUST indicate the name of the firm. (b) Salespersons Prohibited From Advertising. Salespeople are prohibited from advertising the purchase, sale, rental or exchange of any real property under their own name (c) Discriminatory Advertising Prohibited. No broker shall advertise to purchase, sell, rent, mortgage or exchange any real property in any manner that indicates directly or indirectly unlawful discrimination against any individual or group.

Hopkins v. Liberty Mutual Insurance Co., 434 Mass. 556, 750 NE2d 943 (2001).

A claim against an insurance company for unfair settlement practices arising from a singe act can constitute an actionable violation of Chapter 176D and Chapter 93A.

MASSACHUSETTS CONSENT TO DESIGNATED AGENCY:

A designated agent is a real estate licensee who has been appointed by a broker or salesperson to represent a buyer as a "designated buyer's agent" or to represent a seller as a "designated seller's agent." When a buyer or seller consents to designated agency only that designated agent represents the buyer or seller. Any other agents affiliated with the broker may represent another party to the transaction and by consenting to designated agency the buyer or seller permits those agents to represent another party. Individuals who are designated agents owe fiduciary duties to their respective clients.

Kitchen Facilities. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

A kitchen must contain a kitchen sink, space and proper facilities for the installation of a refrigerator and, unless otherwise stated in the lease, a stove and oven in good repair. These facilities must be free from defects which make them difficult to clean, or which create an accident hazard. [410.100]

I. DUTIES AND POWERS OF THE BOARD OF REGISTRATION

A. Examine Records. Rule 2.05 (8). B. Conduct Investigations. 87AAA. C. Hold Hearings. 87BBB. A. Examine Records. Rule 2.05 (8). The board has the right to inspect the records of funds deposited in brokers' escrow accounts. B. Conduct Investigations. 87AAA. 1. SubjectofInvestigations. a. Complaints regarding license law violations. b. Persons attempting to act as brokers or salespersons without a license. NOTE: Complaintsareinvestigatedbytheboardonlyifthecomplaintisinwriting,can 14-1 Chapter 14 - Massachusetts Licensing Law be verified and is signed by the aggrieved person. 2. PurposeofInvestigations. a. To informally settle a complaint. b. To determine if a hearing is warranted. C. Hold Hearings. 87BBB. 1. Purposeofhearings. a. To determine if there has been a license violation. b. To revoke, suspend, or refuse to renew a license. NOTE: Ahearingisnotrequiredfortheboardtorefusetograntanoriginallicense,but an applicant who has been refused an original license must be given a hearing if, within ten days of the receipt of the decision, the applicant requests a hearing in writing. 2. PowersoftheBoardregardinghearings. a. Summon witnesses and records. b. Hear testimony under oath. c. Take disciplinary action. d. Reconsider any decision and reissue or reinstate a license that has been refused, suspended or revoked. 3. Noticeofhearingrequirements. a. Ten day notice in writing to all parties. b. Notice must contain the grounds for the complaint and a copy of the complaint or charges. 4. Rightsoftheaccusedandconductofhearings. a. Hearings are conducted in a manner similar to a legal trial. b. Accused may be represented by an attorney, but the board does not have to furnish counsel. 5. DecisionsoftheBoard. a. Must be by majority vote and contain the basis for the board's action. b. Must be sent to all parties concerned. c. Must be reported to the attorney general for appropriate action. 6. Right of appeal. 87BBB(C). a. Time to file. Twenty days from receipt of decision. b. Place. State superior court. c. Powers of the superior court on appeal. 1) Affirm or annul the board's decision. 2) Make a new decision. 3) Assess costs if either party acted in bad faith. NOTE: Licensees are forbidden to continue practice pending outcome of appeal. D. Chapter 112: Section 87AAA. Complaints; investigation by board; revocation or suspension of license; grounds; penalties.

LLC, LLP Insurance. Licensure 254 CMR 2.00

An LLC and LLP must maintain professional liability insurance which meets the following minimum standards: (a) The insurance shall cover negligence, wrongful acts, errors and omissions and insure the LLC and it officers or the LLP and its partners as required by M.G.L. c. 156C, §. 65 and M.G.L. c. 108A, §. 45(8) (a). (b) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or officers of, the LLC, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or officers of, the LLC. (c) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or partners of, the LLP, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or partners of, the LLP. (d) The requirements of 254 CMR 2.00(12) shall be satisfied if the LLC or LLP maintains insurance sufficient to provide coverage at a level of at least $300,000 for each claim with an aggregate top limit of liability for all claims, during any one year, of at least $1,000,000; and (e) The insurance required by 254 CMR 2.00(12) may provide that it does not apply to any dishonest, fraudulent, criminal, or malicious act or omission of the insured LLC, or any officer or employee thereof, or the LLP, or any partner or employee thereof. (f) Cancellation or any other interruption in required insurance coverage shall require the LLC or LLP to immediately cease the practice of real estate brokering until such time as the LLC or LLP is in compliance with 254 CMR 2.00(12). (g) An LLC or LLP must notify the Board within 5 business days, if the LLC or LLP insurance coverage is canceled or otherwise interrupted. Failure to provide required notice to the Board will subject the LLC and its officers or the LLP and its partners who are licensed by the Board to disciplinary action pursuant to M.G.L. c. 112, § 87AAA. (h) An LLC or LLP may be required to provide verification of compliance with 254 CMR 2.00(12), satisfactory to the Board, when it seeks initial licensure, the renewal of such license and at any other time at the request of the Board.

D. Ways to get your License Revoked and taken away or suspended. Chapter 112: Section 87AAA. Complaints; investigation by board; revocation or suspension of license; grounds; penalties.

A.Knowingly made any substantial misrepresentation. b. Acted in the dual capacity of broker and undisclosed principal in the same real estate transaction. c. Acted for more than one party to a transaction without the knowledge and consent of all the parties, i.e. dual agency. d. Failed, within a reasonable time, to account for or remit any moneys belonging to others. e. Paid or shared fees with unlicensed persons. Accepted, gave or charged any undisclosed commission, rebate or profit on expenditures for a principal. g. Induced a party to break a contract for personal gain. h. Commingling of money or property of a principal. i. Failed to give to both the buyer and seller a copy of the purchase and sale agreement. j. Committed any act expressly prohibited by the license law. This covers any violation of the law or the rules and regulations not specifically set forth in Section 87AAA. k. Found guilty of blockbusting (panic peddling) by the Mass. Commission against Discrimination (MCAD). l. Accepted a net listing from a prospective seller or from an owner or landlord for the rental of residential or commercial property. (See Rule 2.05 (12). m. Advised against the use of the services of an attorney in any real estate transaction. Rule 2.05:( 4). n. Evidenced lack of good moral character resulting in conviction of a criminal offense. o. Failed to comply with the out-of-state property registration act. p. Convicted of discrimination in violation of Chapter 151B. Sixty-day suspension for first offense; ninety-day suspension for the second offense if committed within two years of the prior offense. q. Obtained a license by false or fraudulent representation.

Security. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

All dwellings must be secured against unlawful entry. [410.480(A)] Entry doors to the dwelling and the dwelling unit and every opening exterior window of a dwelling must be secured against unlawful entry and fitted with a functioning locking devise. [410.480(B), (D) & (E)] The main entry door of a dwelling with three or more dwelling units must be equipped to close and lock automatically. Every door of the main common entryway and every exterior door leading into the dwelling other than the door of the main common entryway, which is equipped as described above, must be equipped with an operating lock. [410.480(C)] The owner of a dwelling is required to post a notice which is constructed of durable material and which is no smaller than 20 square inches in size listing the owner's name, address and telephone number if he/she does not live in the dwelling or have a manager living in the dwelling. If the owner is a realty trust or partnership, the name, address and telephone number of the managing trustee or partner must be posted. If the owner is a corporation, the name, address and telephone number of the president of the corporation shall be posted. [410.481]

THE TIME WHEN THE LICENSEE MUST PROVIDE THIS NOTICE TO THE CONSUMER:

All real estate licensees must present this form to you at the first personal meeting with you to discuss a specific property. The licensee can represent you as the seller (Seller's Agent) or represent you as the buyer (Buyer's Agent) and also can assist you as a facilitator.

Timetable for Compliance. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

An effort to correct any violations of Chapter II of the Sanitary Code must be made within a specific time period which is dependent upon the nature of the violation. Consult either Chapter II of the Sanitary Code or your local sanitary code inspector for specific requirements. [410.830(C),(D)&(E)] All affected tenants shall receive written copies of all inspection reports and orders sent to the owner. [410.833] The board of health may order a dwelling, dwelling unit or rooming house or any portion of such unit condemned and vacated if, as a result of an inspection pursuant to Regulation 410.820, it is determined that the unit or any portion of it is unfit for human habitation. The steps to be followed by the board of health are outlined in Regulation 410.831. [410. 831]

Re-Examination. Licensure 254 CMR 2.00

An individual who fails to pass the written examination for a real estate broker or salesperson may be re-examined by paying the prescribed fee.

License Fees. Licensure 254 CMR 2.00

An individual who has been notified of passing the examination for real estate broker or salesperson must pay the prescribed fee within 30 days from the date of notification. If the required fee is not paid within the specified time period the individual shall be required to be re-examined and pay the prescribed fee for such examination. ThisrequirementmaybewaivedbytheBoarduponshowingofgood cause.

Personal Appearance. Licensure 254 CMR 2.00

Applicants may be required to appear at the office of the Board for an interview.

Applications. (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

Applications for authorization as a real estate school must be made on the formdescribedbytheBoardandaccompaniedbytherequiredfee. TheBoardshallverifythe locations suitability for occupancy. .

Applications Licensure 254 CMR 2.00

Applications for licenses shall be made on forms furnished by the Board and shall be accompanied by the prescribed fee.

Chapter 112: Section 87CCC. Violations; punishment

As of December 30, 2004, "individuals performing work without a license may be assessed a civil administrative penalty not to exceed $1,000 for the 1st violation and $2,500 for a 2nd violation and any subsequent violations." The board may reconsider any decision made by it and may reinstate any license, which has been suspended, and reissue any license which has been revoked. Any person whose license is suspended or revoked shall also be liable to such other punishment as may be provided by law

ExperienceRequirementforLicenseasaBroker. Licensure 254 CMR 2.00

Asalespersonseeking licensure as a real estate broker must: (a) Be employed or affiliated with a licensed real estate broker in performing those activities as defined (for licensed salespeople) in M.G.L.c. 112, § 87PP for three (3) years. The Board shall determine the form and manner to verify such employment or affiliation (b) Obtain licensure as a real estate broker within two years of the date that such employmentoraffiliationasarealestatesalespersonisterminated. Theexperience requirement must be no more than two (2) years old when the examination is taken. For example, a candidate who completes his/her experience requirement September 1, 2011, must take the broker examination no later than August 31, 2013.

Asbestos Material (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Asbestos Material Used as Installation or Covering. The owner shall maintain all asbestos material which is used as insulation or covering on a pipe, boiler or furnace in good repair and free of defects such as holes, cracks, tears or looseness which may allow the release of asbestos dust or powdered, crumbled or pulverized asbestosmaterial. Theownermustcorrectanyviolationseitherbyrepairingor removing the asbestos material in accordance with detailed procedures outlined in the regulations. [410.353(B)(C)(D)] - [Asbestos abatement undertaken by the owner must be in compliance with all provisions of the regulations of the departments of Labor and Industries (453 CMR 6.00) and Environmental Protection (310 CMR 7.00).]

(RECIPROCAL LICENSURE, ATTORNEY LICENSURE AND WAIVERS:)

Attorney We must first receive a LETTER OF GOOD STANDING issued by the SJC along with a cover letter that includes the applicant's mailing address, birthday, and a non-refundable application fee of 20 dollars. Once these materials are received we will mail (do not pick up) the appropriate documents for your completion. The issue date is always on the first and the 15th of each month provided the completed application is received prior to that date. Letters of Good Standing are valid for 90 days and must be valid at the issuance of the Massachusetts license. Attorney We must first receive a LETTER OF GOOD STANDING issued by the SJC along with a cover letter that includes the applicant's mailing address, birthday, and a non-refundable application fee of 20 dollars. Once these materials are received we will mail (do not pick up) the appropriate documents for your completion. The issue date is always on the first and the 15th of each month provided the completed application is received prior to that date. Letters of Good Standing are valid for 90 days and must be valid at the issuance of the Massachusetts license. Law School Student Massachusetts law school students are eligible to take the Salesman examination without first taking the Real Estate Salesman course provided he/she has completed a course in property law at a Massachusetts Law School. A waiver (of the education) allowing the applicant to take the examination will be sent upon receipt of a certified transcript from the appropriate Law School ad a written request for an educational waiver. This type of waiver is valid for two years and a new waiver can be issued with a new transcript should the two years expire. Connecticut, Rhode Island, West Virginia, Nebraska, Iowa and Mississippi Complete reciprocity for both Salesmen and Brokers from the first day of Licensure. We will send an application upon receiving a Certified Record of License History from the appropriate state's Real Estate Board, showing a current license, Commission along with the name, mailing address, birthday of the applicant, and a non-refundable application fee of $20.00 for brokers and $12.00 for salesmen. Certified Records are valid for 90 days and must be valid at the issuance of the Massachusetts license. Oklahoma Salesmen and Brokers that have been licensed for two years have complete reciprocity. We will send an application upon receiving a CERTIFIED RECORD OF LICENSE HISTORY from the Oklahoma Real Estate Commission, showing a current license, along with the name, mailing address, birthday of the applicant, and a non-refundable application fee of 20 dollars for brokers and 12 dollars for salesmen. Certified Records are valid for 90 days and must be valid at the issuance of the Massachusetts license. Salesmen and Brokers less than two year. See "All Other States" below. New York Brokers only providing they have been licensed for two years have complete reciprocity. We will send an application upon receiving a CERTIFIED RECORD of LICENSE HISTORY from the New York Real Estate Commission, showing a current license, along with the name, mailing address, birthday of the applicant, and a non-refundable application fee of 20 dollars. Certified Records are valid for 90 days and must be valid at the issuance of the Massachusetts license. Brokers who have been licensed for less than two years and Salesmen who have been licensed for any length of time. See "All Other States" below. New Hampshire Salesmen and Brokers may apply for a waiver that will allow applicant to take only the State portion of the Massachusetts without the pre-license education. Waivers will be sent upon receipt of a CERTIFIED RECORD OF LICENSE HISTORY from the Real Estate Commission in New

(VI - MASSACHUSETTS DEPARTMENT OF ENVIRONMENTAL REGULATIONS)

Authorities: M.G.L. c. 30, §§ 61-62H: Massachusetts Environmental Policy Act; 301 CMR 11.00: MEPA Regulations.

Bathroom Facilities. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Bathroom facilities must include a toilet with a toilet seat and a bathtuborshower. Thesemustbesituatedinaroomwhichallowsapersonprivacy, which is fitted with a door capable of being closed and which is not used for the purpose of living, eating, sleeping or cooking. In addition, a washbasin other than the kitchen sink must be located either in the room containing the toilet or near the entrancetothatroom. [410.150-410.152]

Legal Advice. Rule 2.05 :( 4). (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

Brokers and salespersons are not permitted to give legal advice and are forbidden to advise against the use of the services of an attorney in a real estate transaction.

Hot Water Facilities. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Facilities for the heating of water must be provided (i.e. suppliedandpaidfor)and kept in good working order by the owner. The owner must supply hot water in sufficient quantity and pressure to satisfy the normal use of all plumbing fixtures which generally require hot water to function properly. The temperature of the hot water is not to exceed 130° Fahrenheit (54° Celsius) nor fall below 110° Fahrenheit (43° Celsius). Under certain leases, an occupant may be required to provide the fuel for the heating of the water. [410.190]

Changes to the Homestead Protection Law

Chapter 395 of the Acts of 2010, an Act Relative to the Estate of Homestead, revises and replaces the provisions of the Massachusetts homestead protection law, General Laws Chapter 188 §1-10. If you filed a homestead declaration prior to March 16, 2011, your $500,000 protection will continuetoapply. Thereisnoneedtore-fileyourhomesteadprotectionsduetothesestatutory changes. Thenewlawcreatesanautomatic$125,000protectiononhomesthatdonothavea homestead declaration filed at the Registry of Deeds in order to safeguard deposits and situations where a declaration may be incorrectly filed. Homestead protections now extend to pre-existing debts and the proceeds of a sale or insurance coverage. Trusts are now eligible for homestead protections. For those individuals over the age of 62 (elderly) or legally disabled, the new law now expressly states that a homestead may be filed on each individual's behalf and the aggregate protection increases to $1 million. Homestead declarations filed on manufactured homes must now be filed at the local Registry of Deeds, not the town offices. If you are purchasing your new principal residence, your closing attorney must provide you, as a mortgagor, with notice of your right to declare a homestead protection. At that time, you will be asked to acknowledge receipt of this notice in writing.

Leardi v. Brown, 394 Mass. 151 (1985).

Chapter 93A can be used to redress any injury, defined as "invasion of a legally protected interest." and "plaintiffs are entitled to nominal damagesevenwherenoactualdamagesareshown."

Convicted of blockbusting.

Convicted of blockbusting. $1,000 to $2,500, and/or six months imprisonment. 87AAA(k) As of December 30, 2004, "individuals performing work without a license may be assessed a civil administrative penalty not to exceed $1,000 for the 1st violation and $2,500 for a 2nd violation and any subsequent violations." The board may reconsider any decision made by it and may reinstate any license, which has been suspended, and reissue any license which has been revoked. Any person whose license is suspended or revoked shall also be liable to such other punishment as may be provided by law

Authorized Agents. Licensure 254 CMR 2.00

Each authorized school must designate one individual as an authorized agent. The authorized agent shall: (a) maintain records documenting the attendance of individuals including the name of individuals, the dates on which the individuals attended the school and the date on which the individuals completed either the curriculum for licensure as a real estate broker or salesperson, the continuing education curriculum for licensed brokers and salespeople or the instructor curriculum. Each authorized school shall maintain the record of each individual for at least two years following the completion of the curriculum by such individual; (b) ensure that only individuals who complete the 24 hours of education for salespersons and 30 hours of education for brokers before June 1, 2011 or 12 hours of continuing education for brokers and salespersons are certified, in a form prescribed by the Board, as meeting the educational requirements for licensure or renewal of licensure; (c) notify the Board of any change in the address or telephone number of the authorized school or any change of the authorized agent within seven days of such change. (d) ensure that only qualified instructors are permitted to teach the curriculum that contributes toward certification for licensure or continuing education.

Exits. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Exits must be located in every dwelling unit and rooming unit so that safe passage is assured all occupants in accordance with the Massachusetts State Building Code. [410.450] Owners are responsible for maintaining common exits free from obstructions. Occupants are responsible for the maintenance of exits intended for their exclusive use. [410. 451] The owner of a dwelling is responsible for maintaining all means of egress in a safe, operable condition at all times. In addition, the owner shall keep all exterior stairways, fire escapes, egress balconies and bridges free of ice and snow. [410.452]

Authorized Agents. (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

Each authorized school must designate one individual as an authorized agent. Theauthorizedagentshall: (a) maintain records documenting the attendance of individuals including the name of individuals, the dates on which the individuals attended the school and the date on which the individuals completed either the curriculum for licensure as a real estate broker or salesperson, the continuing education curriculum for licensed brokers and salespeople or the instructor curriculum. Each authorized school shall maintain the record of each individual for at least two years following the completion of the curriculum by such individual; (b) ensure that only individuals who complete the 40 hours of education for salesperson's, 40 hours of education for brokers or 12 hours of continuing education for brokers and salesperson's are certified, in a form prescribed by the Board, as meeting the educational requirements for licensure or renewal of licensure; (c) shall notify the Board of any change in the address or telephone number of the authorized school or any change of the authorized agent within seven days of such change. (d) ensure that only qualified instructors are permitted to teach the curriculum that contributes toward certification for licensure or continuing education.

Moral Character. Licensure 254 CMR 2.00

Each individual seeking a license as a broker or salesperson shall furnish evidence of good moral character. Applications for a license shall be accompanied by the recommendations of three reputable citizens, not related to the applicant, who reside in or have their place of business in the Commonwealth. Each recommendation shall certify that the individual bears a good reputation for honesty and fair dealing and shall recommend that a license be granted to such individual.

Single Location Authorized. (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

Each location at which a school operates must be separately authorized (and the Board may set a limit on the number of separate locations for an authorized school).

Single Location Authorized. Licensure 254 CMR 2.00

Each location at which a school operates must be separately authorized (and the Board may set a limit on the number of separate locations for an authorized school).

Continuing Education Requirement. Licensure 254 CMR 2.00

Effective January 1, 1999 no license of a real estate broker or salesperson will be renewed unless they verify, in a form and manner determined by the Board, that they have completed the continuing education requirements established in M.G.L. c. 112, § 87XX 1/2. (a)EducationalCurriculum. TheBoardshallpublishthecurriculumwhichwill form the basis of the continuing education requirement and may change such curriculum from time to time as necessary, consistent with M.G.L. c. 112, § 87XX 1/2. (b)VerificationofCompliance. Witheachrenewaloftheirlicense,abroker or salesperson must certify to the Board that they have completed the 12 hours of continuing education in the curriculum published by the Board pursuant to 254 CMR 5.02. Authorized schools shall maintain records for each individual broker or salesperson who has completed the continuing education curriculum for a period of at least three years following completion of the curriculum. (c) Inactive Status. Licensed brokers and salespersons who fail to comply with the continuing education requirement shall have their license placed on an inactive status by the Board. Brokers and salespersons designated inactive are prohibited from practicing as such. An inactive broker may receive a referral fee from a licensed active real estate broker when making a referral of a person to such licensed active broker. Note: Inactive salespersons are permitted to perform potential listings to an active broker. Nothing herein shall authorize inactive real estate brokers and salespersons to engage in brokering as defined in M.G.L. c.112, § 87PP. (d) Recording of Inactive License Status. Licensees placed on an inactive status shall not be issued a license. (e) Renewal. School authorizations are valid for two years from the date of issuance and shall be renewed biennially.

Types of Ownership.

Except for husbands and wives, ownership in Massachusetts is the same as discussed in Chapters 4 and 5. 1. Married couples are not limited to ownership as tenants by the entirety; they may also own as joint tenants or as tenants in common. 2. Ownership as protection against certain creditors. a. Tenancy by the Entirety. Since February 11, 1980 the law protects either spouse from losing his or her home to creditors (except for mortgages, taxes and necessaries), so long as one spouse is living in the house. The creditor has a right to attach the home but may not sell it to satisfy the debt. When title is conveyed or both spouses are dead, the creditor's claim may be asserted. Persons who obtained title as tenants by the entirety prior to February 11, 1980 may elect to receive the benefits of the new law by recording a notice with the registry of deeds. b. Homestead. Provides up to $500,000 protection to the homeowner from creditors seizing a home to satisfy a debt. See Letter S Page 47.

MASSACHUSETTS REAL ESTATE LICENSE LAW, RULES AND REGULATIONS

Introduction. State licensing of real estate brokers and salespersons went into effect on January 1, 1960. The law governing the licensing and conduct of licensees is contained in M.G.L. Chapter 112, Sections 87PP to 87DDD-1/2. The duties and responsibilities of the Board of Registration are described in M.G.L. Chapter 13, Sections 54 through 57. Licensees are also subject to the rules adopted by the board and are referred to here as Rules Sections 2.01 through 2.06. License applicants should obtain a booklet issued by the state containing a complete copy of the license laws, rules and regulations. Summary of Chapter 13, Sections 54 through 57. These sections establish a board consisting of five members who are appointed by the governor, three of whom are required to have been active real estate brokers for at least seven years; two must be unlicensed persons representing the public. Board members serve, without pay, for five-year terms, which are staggered so that each year a vacancy has to be filled or a member reappointed. A chairperson is appointed by the governor. The board must hold at least four meetings per year and file annual reports with the governor and legislature. Board members may be reimbursed for their expenses, and the board may appoint an executive secretary and hire clerical help. The board may make rules to implement the law, but may not change the law.

(Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Kitchen Facilities Bathroom Facilities W ater Supply Hot W ater F acilities Heating Facilities Provision for Oil Lighting and Electrical Facilities Metering of Electricity and Gas Installation and Maintenance of Facilities Asbestos Material Used as Insulation or Covering Smoke Detectors Exits Maintenance of Structural Elements Insects, Rodents and Skunks Garbage and Rubbish Storage and Disposal Security

MASSACHUSETTS CONSUMER PROTECTION ACT

Many people and businesses are unaware of the rights and responsibilities that arise from the Massachusetts Consumer Protection law , Massachusetts General Laws Chapter 93 A. This statute is commonly ignored or misunderstood by Massachusetts residents. A short summary of the law's main provisions may prove helpful. As originally drafted, Chapter 93A did not contain any private right to sue -only the Attorney General had that power. The state legislature quickly fixed that omission and now individual consumers and businesses can enforce their statutory rights in a private lawsuit. Note: The Consumer Protection Act in Massachusetts mandates that a real estate salesperson has an affirmative obligation to disclose facts that may affect the buyer's decision to buy a property.

Sub-Agency Representation

No broker or salesperson shall enter into an agreement with any other broker or salesperson to represent a seller or purchaser as a secondary or sub-agent with out informing such seller or purchaser in writing that the secondary or sub-agent's actions may subject the seller or purchaser to vicarious liability. The broker or salesperson shall provide written notice containing the information of potential vicarious liability and obtain the seller's or purchasers consent on such notice tosecondaryorsub-agency. Thewrittennoticemuststatethatthebrokermay cooperatewithanotherbrokerwhoisthenasub-agentofthesellerorbuyer. The written notice must further state that vicarious liability is the potential for a seller or buyer to be held liable for a misrepresentation or an act or omission of the sub- agent and that the sell or buyer authorizes the broker or salesperson to offer sub- agencyinsigningthenotice. Thebrokerorsalespersonshallprovidesuchnoticeat the execution of an agreement to sell the real property of the seller or when the agent andpurchaseragreethattheagentwillrepresentsuchpurchaser. ThisSection applies to real estate brokers or salespeople engaged in the purchase or sale of land with a building intended for use as a one to four unit residential dwelling or to the purchase or sale of land on which a building is intended to be constructed for use as a one or two unit residential dwelling.

Prohibition on Broker Sales Activity. (4. Promotional Sales of Out of State Real Property: 254 CMR 6:00)

No broker shall offer for sale in the Commonwealth an interest in real property which is located in a land development of another state unless the owner or developer of such land development registers such property with the Board.

Surety Bonds. Licensure 254 CMR 2.00

No broker's license shall issue or be renewed until such broker gives the Board the bond required by M.G.L. c. 112, § 87TT.

Sharing of Fees. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

No fee, commission or other valuable consideration shall be paid to or shared by an owner's managing agent or its employees as the result of the sale of real estate for the owner unless such agent and its employees are licensed brokers or salespersons, except as provided for in M.G.L.c. 112, § 87QQ

Sales by Brokers. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

No interest in any real property located in an out of state real property development shall be subject to any promotional advertisement, offering for sale or sold in the Commonwealth unless it is offered for sale and sold by a licensed Massachusetts broker. Promotional advertising as used herein means any advertising material offered through any means of communication in the Commonwealth.

Sales by Brokers. (4. Promotional Sales of Out of State Real Property: 254 CMR 6:00)

No interest in any real property located in an out of state real property development shall be subject to any promotional advertisement, offering for sale or sold in the Commonwealth unless it is offered for sale and sold by a licensed Massachusetts broker. Promotional advertising as used herein means any advertising material offered through any means of communication in the Commonwealth.

License Renewal. Licensure 254 CMR 2.00

No license may be renewed later than one year following the expiration of such license nor may any broker or salesperson practice when such license has expired. Any license renewal sought after license expiration but prior to the end of the one year grace period must be on the form provided by the Board and verify to the Board's satisfaction completion of continuing education as required by M.G.L. c. 112, § 87XX 1/2, and be accompanied by the prescribed fee

Business Entities. Licensure 254 CMR 2.00

No licensee may engage in the business of real estate brokering in a corporation, limited liability company (LLC), partnership, limited liability partnership (LLP), association or society unless the entity is licensed by the Board. No broker's license shall issue to a corporation, LLC, partnership, LLP, association or society unless an officer in such corporation, society or association or partner in a partnership is a licensed broker in the Commonwealth and designated as the broker of recordfortheentity. Thebrokerofrecordmustbecurrentlylicensedatalltimes, otherwisethelicenseoftheentityshallcease. Thebrokerofrecordshallbein responsible charge of the business entity and personally responsible for the acts of the entity and its employees and agents.

(TITLE 5/SEPTIC SYSTEMS)

On-site wastewater disposal systems are systems that treat wastewater flows, usually fewer than 10,000 gallons per day. On-site systems include conventional septic systems - a septic tank with a leaching field - and may include the use of innovative/alternative (I/A) systems. Over 30% of the homes in Massachusetts have on-site wastewater systems, as do small businesses and institutions that are located in un-sewer areas. Title 5 of the State Environmental Code, 310 CMR 15.000, is a regulation that protects you and your community. Title 5 requires the proper sitting, construction, and maintenance of all on-site wastewater disposal systems. On-site systems that are not properly located and maintained can contribute pathogens and nutrients to surface and ground waters, endangering drinking water supplies, wildlife habitat, and surface water bodies.

Advertising Notice of Registration. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

Once the Board registers an out of state real property development the owner or developer of such development must note, in a form to be determined by the Board, the fact of such registration in all its subsequent advertisements in the Commonwealth.

Advertising Notice of Registration. (4. Promotional Sales of Out of State Real Property: 254 CMR 6:00)

Once the Board registers an out of state real property development the owner or developer of such development must note, in a form to be determined by the Board, the fact of such registration in all its subsequent advertisements in the Commonwealth.

Hearing. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Owners and/or occupants are entitled to file a written petition for a hearing before the local Board of Health if: a. they have been served an order pursuant to any regulation in Chapter II of the SanitaryCodebytheboardofhealth. Theirpetitionmustbefiledwithinsevendays after the day the order was served. b. they believe that the board of health or any inspector has failed to follow the provisions of Chapter II by neglecting to conduct an investigation as requested, to issue a report on the inspection, to cite violations claimed to exist, to certify that a violation may endanger or materially impair the health or safety and well-being of the occupants or to issue an order as required by Regulation 410.830. The petition must be filed within 30 days of the initial request for an inspection. [410. 850] Affected parties, owners and occupants shall be informed of the hearing and of their right to inspect the files of the board of health. [410.851] The hearing must begin within 30 days of the date the order was served and, in certain instances, must begin within less than 30 days. [410.852] Within seven days after the hearing has concluded, the board of health shall inform the petitioner in writing whether the board has decided to sustain, modify or withdraw the order. [410.854]

Haser v. Wright, 65 Mass. App. Ct. 903, 840 NE2d 63 (2005).

Parties who fail to request attorney fees in their briefs may be denied the ability to recover those fees.

Filing Requirement. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

Prior to promoting for sale an interest in real property located in a land development of another jurisdiction the owner or developer of such real property shall register it with the Board on the form and paying the fee prescribed by the Board. Such registration shall be renewed annually.

Filing Requirement. (4. Promotional Sales of Out of State Real Property: 254 CMR 6:00)

Prior to promoting for sale an interest in real property located in a land development of another jurisdiction the owner or developer of such real property shall register it with the Board on the form and paying the fee prescribed by the Board. Such registration shall be renewed annually.

REVIEW PROCESS: (TITLE 5/SEPTIC SYSTEMS)

Proponents of projects that require state action and that meet or exceed MEPA review thresholds (301 CMR 11.03: Review Thresholds) must file an Environmental Notification Form (ENF) (301 CMR 11.05: ENF Preparation and Filing) and may be required to file an Environmental Impact Report (EIR) (301 CMR 11.07: EIR Preparation and Filing). Notice of the availability of review documents and the ENFs are published in the semi-monthly EnvironmentalMonitor(www.mass.gov/envir/mepa/secondlevelpages/currentissue.htm). The total review period for an ENF is 30 days from the publication date of the Monitor, of which the first20daysisavailableforpublicandagencycomments. Afterthecloseofpubliccomment and before the last day of the ENF review, the Massachusetts Secretary of Environmental Affairs issues a certificate stating whether or not an EIR is required and, if so, what the scope of the EIR willbe. Thescopeislimitedtothepotentialenvironmentaldamagesoftheproposalthatare withinthesubjectmatterofrequiredstatepermits. TheEIRreviewperiodlastfor37days following the date of the Environmental Monitor in which notice of its availability is published, of whichthefirst30daysareavailableforpublicandagencycomment. Withinsevendaysafter the close of comments, the Secretary issues a certificate stating whether or not the EIR adequately and properly complies with the Massachusetts Environmental Policy Act and its implementing regulations. No state permits can be issued until the Secretary certifies that the EIR complies with MEPA, that is, the environmental impacts have been fully described and all necessary plans to avoid, minimize, and mitigate adverse effects are in place. The MEPA regulations also provide mechanisms to review proposals that are below MEPA thresholds but may have adverse environmental impacts (301 CMR 11.04: Fail-Safe Review), project changes and time lapses (301 CMR 11.10: Project Changes and Lapses of Time), and for waivers of certain provisions of the regulations (11.11: Waivers).

Licensure:254CMR2.00

Purpose. 254 CMR 2.00 sets forth the application procedures, examination, experience, good moral character requirements for licensure. Applications. Applications for licenses shall be made on forms furnished by the Board and shall be accompanied by the prescribed fee. Examinations. No broker or salesperson license shall be issued to any individual unless such individual satisfactorily passes a written examination conducted by the Board or its agent. Prior to taking the examination applicants must submit certification to theBoardthattherequirededucationhasbeencompleted. Thiscertificationshallbe valid for a period not to exceed 24 months following the date on which the education was completed. Any applicant who is an attorney at law in good standing of this Commonwealth shall not be required to take such examination. (4) Re-Examination. An individual who fails to pass the written examination for a real estate broker or salesperson may be re-examined by paying the prescribed fee. (5) License Fees. An individual who has been notified of passing the examination for real estate broker or salesperson must pay the prescribed fee within 30 days from the date of notification. If the required fee is not paid within the specified time period the individual shall be required to be re-examined and pay the prescribed fee for such examination. ThisrequirementmaybewaivedbytheBoarduponshowingofgood cause. (6)ExperienceRequirementforLicenseasaBroker. Asalespersonseeking licensure as a real estate broker must: (a) Be employed or affiliated with a licensed real estate broker in performing those activities as defined (for licensed salespeople) in M.G.L.c. 112, § 87PP for three (3) years. The Board shall determine the form and manner to verify such employment or affiliation (b) Obtain licensure as a real estate broker within two years of the date that such employmentoraffiliationasarealestatesalespersonisterminated. Theexperience requirement must be no more than two (2) years old when the examination is taken. For example, a candidate who completes his/her experience requirement September 1, 2011, must take the broker examination no later than August 31, 2013. (7) Moral Character. Each individual seeking a license as a broker or salesperson shall furnish evidence of good moral character. Applications for a license shall be accompanied by the recommendations of three reputable citizens, not related to the applicant, who reside in or have their place of business in the Commonwealth. Each recommendation shall certify that the individual bears a good reputation for honesty and fair dealing and shall recommend that a license be granted to such individual. (8) Personal Appearance. Applicants may be required to appear at the office of the Board for an interview. (9)QualificationReports. TheBoardmayrequireeachindividualseekingalicenseto submit a report from an independent source pertaining to the individual's previous occupation or any other information which is material to the qualification of such individual for a license. (10) Surety Bonds. No broker's license shall issue or be renewed until such broker gives the Board the bond required by M.G.L. c. 112, § 87TT. (11) Business Entities. No licensee may engage in the business of real estate brokering in a corporation, limited liability company (LLC), partnership, limited liability partnership (LLP), association or society unless the entity is licensed by the Board. No broker's license shall issue to a corporation, LLC, partnership, LLP, association or society unless an officer in such corporation, society or association or partner in a partnership is a licensed broker in the Commonwealth and designated as the broker of recordfortheentity. Thebrokerofrecordmustbecurrentlylicensedatalltimes, otherwisethelicenseoftheentityshallcease. Thebrokerofrecordshallbein responsible charge of the business entity and personally responsible for the acts of the entity and its employees and agents. (12) LLC, LLP Insurance. An LLC and LLP must maintain professional liability insurance which meets the following minimum standards: a) The insurance shall cover negligence, wrongful acts, errors and omissions and insure the LLC and it officers or the LLP and its partners as required by M.G.L. c. 156C, §. 65 and M.G.L. c. 108A, §. 45(8) (a). (b) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or officers of, the LLC, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or officers of, the LLC. (c) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or partners of, the LLP, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or partners of, the LLP. (d) The requirements of 254 CMR 2.00(12) shall be satisfied if the LLC or LLP maintains insurance sufficient to provide coverage at a level of at least $300,000 for each claim with an aggregate top limit of liability for all claims, during any one year, of at least $1,000,000; and (e) The insurance required by 254 CMR 2.00(12) may provide that it does not apply to any dishonest, fraudulent, criminal, or malicious act or omission of the insured LLC, or any officer or employee thereof, or the LLP, or any partner or employee thereof. (f) Cancellation or any other interruption in required insurance coverage shall require the LLC or LLP to immediately cease the practice of real estate brokering until such time as the LLC or LLP is in compliance with 254 CMR 2.00(12). (g) An LLC or LLP must notify the Board within 5 business days, if the LLC or LLP insurance coverage is canceled or otherwise interrupted. Failure to provide required notice to the Board will subject the LLC and its officers or the LLP and its partners who are licensed by the Board to disciplinary action pursuant to M.G.L. c. 112, § 87AAA. (h) An LLC or LLP may be required to provide verification of compliance with 254 CMR 2.00(12), satisfactory to the Board, when it seeks initial licensure, the renewal of such license and at any other time at the request of the Board. (13) Reciprocal Licensure. The Board may issue a real estate salesperson or broker's license to individuals licensed in other states or jurisdictions without requiring the satisfaction of the education and examination requirements where such other state or jurisdiction has laws similar to the Commonwealth governing the practice of real estate brokering and extends the same privilege to licensed Massachusetts real estate brokers and salespersons. Applicants for reciprocal licensure shall apply on the form provided by the Board and pay the prescribed fee. (14) License Renewal. No license may be renewed later than one year following the expiration of such license nor may any broker or salesperson practice when such license has expired. Any license renewal sought after license expiration but prior to the end of the one year grace period must be on the form provided by the Board and verify to the Board's satisfaction completion of continuing education as required by M.G.L. c. 112, § 87XX 1/2, and be accompanied by the prescribed fee (15) Continuing Education Requirement. Effective January 1, 1999 no license of a real estate broker or salesperson will be renewed unless they verify, in a form and manner a) The insurance shall cover negligence, wrongful acts, errors and omissions and insure the LLC and it officers or the LLP and its partners as required by M.G.L. c. 156C, §. 65 and M.G.L. c. 108A, §. 45(8) (a). (b) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or officers of, the LLC, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or officers of, the LLC. (c) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or partners of, the LLP, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or partners of, the LLP. (d) The requirements of 254 CMR 2.00(12) shall be satisfied if the LLC or LLP maintains insurance sufficient to provide coverage at a level of at least $300,000 for each claim with an aggregate top limit of liability for all claims, during any one year, of at least $1,000,000; and (e) The insurance required by 254 CMR 2.00(12) may provide that it does not apply to any dishonest, fraudulent, criminal, or malicious act or omission of the insured LLC, or any officer or employee thereof, or the LLP, or any partner or employee thereof. (f) Cancellation or any other interruption in required insurance coverage shall require the LLC or LLP to immediately cease the practice of real estate brokering until such time as the LLC or LLP is in compliance with 254 CMR 2.00(12). (g) An LLC or LLP must notify the Board within 5 business days, if the LLC or LLP insurance coverage is canceled or otherwise interrupted. Failure to provide required notice to the Board will subject the LLC and its officers or the LLP and its partners who are licensed by the Board to disciplinary action pursuant to M.G.L. c. 112, § 87AAA. (h) An LLC or LLP may be required to provide verification of compliance with 254 CMR 2.00(12), satisfactory to the Board, when it seeks initial licensure, the renewal of such license and at any other time at the request of the Board. (13) Reciprocal Licensure. The Board may issue a real estate salesperson or broker's license to individuals licensed in other states or jurisdictions without requiring the satisfaction of the education and examination requirements where such other state or jurisdiction has laws similar to the Commonwealth governing the practice of real estate brokering and extends the same privilege to licensed Massachusetts real estate brokers and salespersons. Applicants for reciprocal licensure shall apply on the form provided by the Board and pay the prescribed fee. (14) License Renewal. No license may be renewed later than one year following the expiration of such license nor may any broker or salesperson practice when such license has expired. Any license renewal sought after license expiration but prior to the end of the one year grace period must be on the form provided by the Board and verify to the Board's satisfaction completion of continuing education as required by M.G.L. c. 112, § 87XX 1/2, and be accompanied by the prescribed fee (15) Continuing Education Requirement. Effective January 1, 1999 no license of a real estate broker or salesperson will be renewed unless they verify, in a form and manner

Agency Disclosure RequiremenT

Purpose. To inform prospective purchasers or buyers of real estate of the relationship of real estate brokers and salespersons with prospective purchasers or sellers of the real estate. Disclosure procedure. a. Notice form must be Board-approved. b. Notice must be given at licensee's first meeting with the prospective purchaser or seller. c. Purchaser or seller must be requested by the licensee to sign the disclosure notice or to indicate a reason for refusal. d. The original notice must be given to the purchaser or seller and a copy maintained by the licensee for a period of three years.

Massachusetts Consumer Protection Law. M.G.L. Chapter 93A.

Purpose. To provide a remedy for immediate relief to consumers who have lost money as a result of unfair and deceptive acts involving transactions between the public and retail businesses. 2. Exempt activities. The law does not apply to transactions between two business entities, such as corporations dealing with other corporations. 3. Remedy for violation of Chapter 93A. A person seeking damages resulting from an unfair and deceptive practice, may be entitled to three times the actual damages if the defendant fails to make a reasonable offer of settlement within thirty days of receiving a written complaint or demand for payment. 4. Effect upon real estate brokers and salespersons. It is unfair and deceptive practice for a real estate broker or salesperson to conceal, fail to disclose or to misrepresent any vital facts about a sale, which if known to the buyer, would affect the buyer's decision to buy the property.

Hold Hearings. 87BBB.

Purposeofhearings. a. To determine if there has been a license violation. b. To revoke, suspend, or refuse to renew a license.

Types of Licenses. (II. LICENSING REQUIREMENTS - 87PP)

Real estate broker. Issued to individuals or business organizations. Real estate salesperson. Issued only to individuals. Temporarybroker'slicense. a. Issued to the representative of a deceased sole proprietor. b. Valid for one year and not renewable. c. Issued without exam to a person approved by the board. d. Temporary licensee required filing a $5,000.00 bond.

Hearing. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The final decision of the board of health may be appealed to the appropriate Massachusetts court. [410.860]

Smoke Detectors Regulations

Revisions to Take Effect April 5, 2010: The Board of Fire Prevention Regulations has approved an emergency amendment to 527 CMR32 Approved Smoke Detectors. This regulation applies to buildings undergoing sale or transfer containing up to five residential units. The regulation which was scheduled to go into effect January 1, 2010, has been moved to April 5, 2010. At that time the regulation will still require photoelectric smoke detectors within 20 feet of a kitchen or bath containing a shower. Areas located beyond 20 feet will be required to contain dual detection by either single unit or two separate units. In addition to the date change the regulation has been clarified to indicate it applies to residential units constructed prior to January 1975 that have not undergone major alteration covered by the State Building Code. It also contains a provision for low voltage household warning systems that may have been installed in these homes. 5) Forms: Environmental Notification Form at http://www.mass.gov/envir/mepa/thirdlevelpages/downloads.htm. (6) Fees: None (7) Website: www.mass.gov/envir/mepa. Contact: MEPA Office (617) 626-1020

Record Keeping. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

Rule 2.05 :( 8). Brokers are required to maintain accurate records of all escrow deposits and withdrawals and other pertinent information concerning each transaction.

Broker of record. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

Rule 2.06(13). The owner/developer must employ a Massachusetts licensed real estate broker in order to engage in the sale or lease of out-of-state land in Massachusetts.

Renewal. (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

School authorizations are valid for two years from the date of issuance and shall be renewed biennially.

B. Conduct Investigations. 87AAA.

SubjectofInvestigations. a. Complaints regarding license law violations. b. Persons attempting to act as brokers or salespersons without a license.

True or False: " In Massachusetts only the local fire department can determined the number and locations of smoke detectors in a property."

TRUE

True or False: " Neither a salesperson nor a broker has to be actively employed to maintain a license."

TRUE

True or False: "Note: Change of licensure Requirements as of June 1, 2011. Please refer to pg. 14-17. 40 hours required as of June 1, 2011. d. Pass a written examination."

TRUE

Lapsed License Policies

The following are the regulations related to renewal or reactivation of a Massachusetts real estate license that has lapsed. The full texts of the Board's regulations are available on this web site. Please contact the Board office at (617) 727-9964 for the appropriate renewal application.

Inspections. (4. Promotional Sales of Out of State Real Property: 254 CMR 6:00)

The Board may inspect a you to f state realproperty developments seeking registration or registered with it. The costs of any inspection shall be borne by the owner or developer. Following an inspection of an out of state real property development the Board shall issue a written report. Such report shall be kept on file with the Board during the time that the out of state real property development is currently registered with the Board and for one year following the termination or expiration of such registration. The owner or developer of such out of state real property shall also maintain such report in its files while such registration is current and for one year following the termination or expiration of such registration.

Rescinding of Authorization. (RULES AND REGULATIONS: - 4.00: REAL ESTATE SCHOOL AUTHORIZATION)

The Board may suspend, revoke or refuse to renew the authorization of any school which fails to adhere to the rules and regulations of the Board including: (a) failure to maintain records as required by 254 CMR 4.00(5)(a); (b) failure to provide appropriate notice to the Board of any change of address, telephone number or of the authorized agent; (c) failure to provide the Board or its agents with copies of or access to requested information; (d) failure to use the exact name of the authorized school on any postings, advertisements, solicitations or any other medium of communication; (e) failure to have an qualified instructor, in accordance with 254 CMR 4.00(7), in the classroom with the individuals taking the curriculum described in 254 4.00(5)(b) during the time that it is provided; (f) obtaining a school authorization by false pretenses or fraudulent representation; (g) discriminating against an individual based on age, marital status, gender, sexual preference, race, religion, socioeconomic status or disability; (h) failing to provide an individual completing the curriculum for licensure as a broker or salesperson or for continuing education with appropriate certification of completion of such curriculum; (i) providing certification of completion to an individual who has not completed such curriculum; (j) combining any part of the broker, salesperson, instructor or continuing education curriculum into a single curriculum or offering. (k) failure to offer the curriculum for licensure and renewal established by the Board.

Regulatory Summary: (TITLE 5/SEPTIC SYSTEMS)

The MEPA Unit, within the Executive Office of Environmental Affairs, administers this review. MEPA provides opportunities for public review of the potential environmental impacts of projects for which state agency action is required; and helps state agencies to satisfy their obligation to avoid damage to the environment, or if damage to the environment cannot be avoided, to minimize and mitigate the damage to the maximum extent practicable. State agency action includes activities that are undertaken, permitted, and/or funded by agencies of the Commonwealth, and the transfer of lands owned or controlled by the Commonwealth. Major categories of project impacts subject to review include land; rare species; wetlands, waterways and tidelands; water; wastewater; transportation; energy; air; solid and hazardous waste; historical and archaeological resources; and state-designated ACECs. The intent of the MEPA review is to inform project proponents and state agencies of potential adverseenvironmentalimpactswhileaproposalisstillintheplanningstage. Theproponent, through the preparation of one or more review documents, identifies required state agency actions and describes the means by which the proposal complies with applicable regulatory standards and requirements. All relevant state agencies are required to identify any aspects of the proposal that require additional description or analysis prior to completion of the agency action, most commonly issuance of an environmental permit.

A. Examine Records. Rule 2.05 (8).

The board has the right to inspect the records of funds deposited in brokers' escrow accounts.

Greelish v. Drew, 35 Mass. App. Ct. 541, 622 NE2d 1376 (1993)

The court applied an amendment to Chapter 93A which increased the potential damages available when an insurer engages in an unfair or deceptive act or practice. Previously, underlying insurance coverage was not included in the base damages subject to multiplication under Chapter 93A; this case determined that the underlying insurance coverage was to be included.

Conversely, if you are a buyer you are advised that:

The designated seller's agent will represent the buyer and will owe the buyer the duties of loyalty, full disclosure, confidentiality, to account for funds, reasonable care and obedience to lawful instruction; All other licensees affiliated with the appointing broker will not represent the buyer nor will they owe the other duties specified in paragraph (a) to that buyer, and may potentially represent the seller; and if designated agents affiliated with the same broker represent the seller and buyer in a transaction, the appointing broker shall be a dual agent and neutral as to any conflicting interests of the seller and buyer, but will continue to owe the seller and buyer the duties of confidentiality of material information and to account for funds.

SummariesofEnforcementProcedures (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The determination of whether a violation exists is not decided by either the owner or the occupant; this is the responsibility of the local board of health.

On-site inspection. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

The developer is required to make an advance payment to cover the cost of an on-site inspection by the board. Note: The Massachusetts broker promoting the land must pay for an on-site inspection of promotional out-of-state land development made by the Board.

Heating Facilities. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The owner must provide (i.e. supply and pay for) and keep in good working order the facilities capable of heating every habitable room and every room containing bathroom facilities. [410.200] Between September 15 and June 15, these rooms must be heated to a temperature of not less than 68° Fahrenheit (20° C) between 7:00 a.m. and 11:00 p.m. and 64° Fahrenheit (17° C) between 11:01 p.m. and 6:59 a.m., unless the occupant has agreed to supply the fuel under a written lease. [410. 201] Thetemperaturemaynotexceed78°Fahrenheit(25°C)duringtheheatingseason. The number of days per year during which heat must be provided may be increased or decreased through a variance granted locally by the board of health. [410.200 and 410. 048]

Water Supply. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The owner must provide (i.e. supply and possibly pay for) water in a sufficient quantity and pressure so that the occupant's ordinary needs are met. The water must come from the public water supply system or a source approved by the local board of health [410.180]. Effective 3/16/05, M.G.L. Chapter 186, section 15B will be amended by Ch. 417 of the Acts of 2004, allowing landlords to charge new tenants for water after installing meters that record the water usage of each apartment or single family home. It does not apply to tenancies in existence as of the effective date of this act, and also exempts tenants in public housing. A landlord may not charge the tenant separately unless the tenant has signed a written rental agreement explaining the separate charge for water sub meteringandbilling. TheDepartmentofPublicHealthwillfurtheramendthe regulations governing the State Sanitary Code to reflect this change.

Provision for Oil. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The owner must provide the oil used for heating and/or hot water in each unit unless the oil is provided to the tenant in a separate oil tank, such arrangement having been made through a written lease. This only applies to tenancies created after 7/1/94. [410.355]

Garbage and Rubbish Storage and Disposal. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The owner of a dwelling containing three or more units, the owner of a rooming house and the occupant of any other dwelling shall be responsible for providing receptacles in sufficient number for the storageofrubbishandgarbage. Thesereceptaclesmustbelocatedsothatodorsdo not enter the dwelling. Garbage or mixed rubbish and garbage shall be stored in rodent-proof, watertight, covered containers. Plastic bags will not be considered sufficient. [410.600] An occupant exclusively occupying or using any part of the dwelling is responsible for maintaining it free from garbage and filth. [410.602(B)] The owner of any dwelling must keep any part of the dwelling which is used in common by all occupants free from garbage and filth. [410.602(D)]

Smoke Detectors. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

The owner of a dwelling that is required by law to be equipped with smoke detectors must maintain them in compliance with regulations of the State Board of Fire Prevention. If a violation of these regulations is observed during an inspection of a dwelling, the board of health must notify the proper fire official. [410. 482]

Condominium Conversion Regulations.

The regulations apply to any building of four or more rental units, which have been occupied by tenants for at least one year prior to the recording of a master deed. 1. Writtennoticeofowner'sintenttoconvertandanexplanationoftenants'rightsis required to be given by the owner to tenants and lessees. 2. Tenants'rights. a. Time allowed to vacate. 1) One year, or until the lease ends, whichever is longer. 2) Two years for elderly, handicapped, or low and moderate-income tenants or until the lease ends, whichever is longer. 3) An additional two years for elderly, handicapped, or low and moderate-income tenants, to find suitable housing. b. Tenants' right to purchase their apartments. 1) Time. A minimum of ninety days from the end of the time allowed to vacate to purchase their apartments. 2) Price. The unit must be offered to the tenant at terms which are substantially the same as, or more favorable than those offered to the public. c. Cost of moving reimbursement to be paid by the owner. 1) $750 of the tenant's moving costs must be paid within ten days after vacating. 2) $1,000 for elderly, handicapped and low or moderate income tenants. d. Moving assistance. The owner must assist the elderly, handicapped, and low or moderate income tenants in locating suitable, comparable housing accommodations in the same city or town and at comparable rent.

Time Sharing. Massachusetts Real Estate Time Share Act. G.L. Chap. 183B.

The time-share act regulates the development and sale of real estate time-shares. The following is a summary of the requirements. 1. 2. 3. 4. 5. A public offering statement by the developer regarding the acquisition and maintenance of the time-share units similar to that required by the Security and Exchange Commission For marketing certain securities issues. A three-day right of rescission for any contract a purchaser executes in relation to the purchase, financing, renting or any other aspect of time-share acquisition. Terms regarding gifts or free travel, as inducements to purchase must be publicly disclosed. A Massachusetts licensed real estate broker must be employed as a "project broker" for the marketing of all time-shares.

Inspections. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

TheBoardmayinspectanyoutofstaterealpropertydevelopments seekingregistrationorregisteredwithit. Thecostsofanyinspectionshallbeborneby the owner or developer. Following an inspection of an out of state real property development the Board shall issue a written report. Such report shall be kept on file with the Board during the time that the out of state real property development is currently registered with the Board and for one year following the termination or expiration of such registration. The owner or developer of such out of state real property shall also maintain such report in its files while such registration is current and for one year following the termination or expiration of such registration.

QualificationReports. Licensure 254 CMR 2.00

TheBoardmayrequireeachindividualseekingalicenseto submit a report from an independent source pertaining to the individual's previous occupation or any other information which is material to the qualification of such individual for a license.

Maintenance of Structural Elements. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Theownerisresponsibleforinsuringthat the foundation, floors, walls, doors, windows, ceilings, roof, staircases, porches, chimney and other structural elements of the dwelling do not admit rain or snow and that they are rodent-proof, watertight, in good repair and fit for the intended use. The owner must also keep the structural elements free from holes, cracks, loose plaster or other defects where such defects make the dwelling difficult to clean or may cause an accident or constitute an insect or rodent haven. [410.500] Windows and exterior doors must be weather tight. [410.501] No lead paint may be used in painting any surface on the premises. [410.502] A safe handrail must be provided for every stairway used for or intended for use by the occupants. [410.503] The occupant must take reasonable care in the use of floors, walls, doors, windows, ceilings, roof, staircases, porches and chimneys. [410.505]

MeteringofElectricityandGas. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Theownershallprovideandpayforthe electricity and gas used in each dwelling unit unless each dwelling unit has a separate meter and a rental agreement provides for payment by the occupant. Nevertheless, the owner is responsible for maintenance of any wiring or piping for electricity or gas. [410.354]

MASSACHUSETTS LICENSING LAW

This chapter deals with subject matter directly related to the state portion of the license examination. It follows the "Content Outline for Massachusetts," which is published by the testing service. Parts I through V consist of an expanded outline of the state license law, rules and regulations. Part VI & VII covers non-license law topics and Federal law which are unique to Massachusetts or which differ from other states and Part VIII covers agency disclosure. Subject matter that is consistent with other states is discussed in previous chapters of this book and is so noted. Parts I through V do not follow the chronological order of the license law, but are arranged in a way which is more easily understood and remembered by the applicant.

MASSACHUSETTS MANDATORY LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE

This disclosure is provided to you, the consumer, by the real estate agent listed on this form. Make sure you read both sides of this form. The reverse side contains a more detailed descriptionofthedifferenttypesofrelationshipsavailabletoyou. Thisisnotacontract.

Consensual dual agency disclosure.

Thissectionappliestorealestatebrokersor salespeople engaged in the purchase or sale of land with a building intended for use as a one to four unit residential dwelling or the purchase or sale of land on which a building is intended to be constructed for use as a one or two unit residential dwelling. A real estate broker or salesperson may act as an agent for both a seller and prospective purchaser of real estate provided that the broker or salesperson obtains informed written consent from both the seller and the prospective purchaser. Therealestate broker or salesperson shall provide a written consent form which shall clearly state that the broker or salesperson will be representing both the seller and prospective purchaserinthepurchaseandsaleofrealproperty. Theconsentformmustalsostate that a dual agent assists the seller and buyer in a transaction but shall be neutral with regard to any conflicting interest of the seller and buyer. Consequently, the consent form must state that a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and the duty to account for funds. Theconsentformmustprovidethatmaterialinformationreceivedfromeither client that is confidential may not be disclosed by a dual agent, except: (1) if disclosure is expressly authorized; (2) if such disclosure is required by law; (3) if such disclosure is intended to prevent illegal conduct; or (4) if such disclosure is necessary to prosecute a claim against a person represented or to defend a claim against the broker or salesperson. Lastly, the consent must state that the duty of confidentiality shall continue after termination of the brokerage relationship. A broker or salesperson shall obtain the signature of the seller or prospective purchaser on one or more of such consent forms provide the original forms to the seller and prospective purchase and maintain a copy with their records for a period of three years fromthedateontheform. Thebrokerorsalespersonmustalsosigntheconsentform, indicate their license status as either a broker or salesperson, provide their license number and date such form. Nothing herein shall require the seller and prospective purchaser to sign the same consent form.

True or False: " Do not assume that a real estate agent works solely for you unless you have an agreement for that relationship."

True

True or False: " Real estate transactions include listing, selling, buying, renting or leasing, exchanging, dealing in options and negotiating a mortgage on real estate. The definition also includes a person who is paid for procuring customers or leads. Section 87DDD-1/2 includes persons who operate listing services."

True

True or False: " Sellers who contract with real estate brokers to market their property and represent them in the sale of their property are the principals. The Massachusetts Mandatory Agency Disclosure Form is shown on page 14-34."

True

True or False: " The broker or salesperson shall provide written notice containing the information of potential vicarious liability and obtain the seller's or purchasers consent on such notice tosecondaryorsub-agency. "

True

True or False: "Complaintsareinvestigatedbytheboardonlyifthecomplaintisinwriting,can be verified and is signed by the aggrieved person."

True

True or False: "Division of Professional Licensure policy requires a record of standing or certified statement from ALL states in which the applicant has ever been licensed. "

True

True or False: "The Massachusetts broker promoting the land must pay for an on-site inspection of promotional out-of-state land development made by the Board."

True

True or False: "The written notice must further state that vicarious liability is the potential for a seller or buyer to be held liable for a misrepresentation or an act or omission of the sub- agent and that the sell or buyer authorizes the broker or salesperson to offer sub- agencyinsigningthenotice."

True

True or False: "Under a broker's supervision, an unlicensed employee of a real estate agency may rent apartments owned by the broker for a small fee. "

True

Access for Repairs and Alterations. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Upon reasonable notice by the owner, if possible by appointment, the occupant must allow the owner or the owner's representative access to the dwelling so that repairs or alterations may be made which bring the dwelling into compliance with Chapter II of the Sanitary Code. [410.810]

Inspections and Investigations. (Safe and Sanitary Housing for Massachusetts Residents: 105 CMR 410)

Upon receipt of an oral, written or telephone request, the board of health is required to inspect a dwelling, dwelling unit or rooming unit for possible violations of Chapter II. All interior inspections shall be done in the company of the occupant or the occupant's representative. [410.820] The board of health must conduct a complete inspection if requested to do so. [410. 822(B)] The board of health shall attempt to initiate and complete an investigation at a time mutually satisfactory to both the local board of health and the occupant within a time frame dependent upon the nature of the violation but not exceeding five days. [410. 820(A)] Each board of health must use an inspection form which lists, but is not limited to, the following: Inspector' s name Inspection date and time Location of inspection Date and time of additional inspections Description of violation Specific references to violated regulations of Chapter II, by-laws or ordinances Investigator's statement if the violations appear to endanger the safety or health and well-being of the occupants Statement: "This inspection report is signed and certified under the pains and penalties of perjury," followed by the signature of the inspector. [410.821(A)] This inspection report form must include a brief summary of the legal remedies available to the occupantoftheaffectedpremises. [410.821(B)] At the termination of the inspection the occupant or his/her representative must receive a written report of the violations noted during the inspection. The need for an additional inspection by a specialized inspector shall be noted on the report. [410.882(C)]

What Violates The Consumer Protection Law?

What types of business actions violate Chapter 93A? The law does not list them in any definitive fashionbutstatesthat"unfairordeceptivepractices"areillegal. Wellthen,whatis"unfair"or "deceptive?" Like most legal questions, this one is answered by that age-old adage "it depends." A court's analysis of what is unfair or deceptive will not be limited to merely contract, negligence or breach of warranty claims. Harassment, defamation and invasion of privacy all can fall within the list of illegal actions so long as the conduct happens in the consumer realm. Fraud, deception and unfair methods of competition also violate Chapter 93A. Unfair methods of competition claims must be tied to conduct harming the marketplace as a whole and not just to a single consumer or business. Certain actions are deemed to be violations of Chapter 93A by their very nature. Under the law, these illegal activities include certain debt collection practices, landlord-tenant actions and sales tactics. Aside from these detailed violations, the law simply and basically fails to provide specificity aboutthescopeofillegalconduct. Whilethismayfrustratethoselookingforeasyanswers, such an approach allows a case-by-case, fluid determination of violations. One commentator has noted that, over time, this may protect "those unexpressed standards of fair dealing which the conscience of the community may progressively develop."

Disclosure of dual agency.

When a broker or salesperson represents both the purchaser and seller in the same transaction, the licensee must provide a written notice to the purchaser and seller informing them of the consensual dual agency and also comply with the agency disclosure requirement described above. Note: Sellers who contract with real estate brokers to market their property and represent them in the sale of their property are the principals. The Massachusetts Mandatory Agency Disclosure Form is shown on page 14-34.

CONSUMER INFORMATION AND RESPONSIBILITY:

Whether you are the buyer or seller you can choose to have the advice, assistance and representation of your own agent who works for you. Do not assume that a real estate agent works solely for you unless you have an agreement for that relationship. With your consent, licensees from the same firm may represent a buyer and seller in the same transaction. These agents are referred to as dual agents. Also a buyer and seller may be represented by agents in the same real estate firm as designated agents. The "designated seller or buyer agent" is your sole representative. However where both the seller and buyer provide written consent to have a designated agent represent them then the agent making such designation becomes a "dual agent" for the buyer and seller. All real estate agents must, by law, present properties honestly and accurately. They must also disclose known material defects in the real estate. The duties of a real estate agent do not relieve the consumers of the responsibility to protect their own interests. If you need advice for legal, tax, insurance or land survey matters it is your responsibility to consult a professional in those areas. Real Estate agents do not have a duty to perform home, lead paint or insect inspections nor do they perform septic system, wetlands or environmental evaluations.

If you are a seller you are advised that:

a) the designated seller's agent will represent the seller and will owe the seller the duties of loyalty, full disclosure, confidentiality, to account for funds, reasonable care and obedience to lawful instruction; b) allotherlicenseesaffiliatedwiththeappointingbrokerwillnotrepresentthe seller nor will they owe the other duties specified in paragraph (a) to that seller, and may potentially represent the buyer; and c) if designated agents affiliated with the same broker represent the seller and buyer in a transaction, the appointing broker shall be a dual agent and neutral as to any conflicting interests of the seller and buyer, but will continue to owe the seller and buyer the duties of confidentiality of material information and to account for funds.

Broker requirements and limitations relative to hiring salespersons or brokers. 87RR. (STATUTORY REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES)

a. Broker may not employ or pay a fee to any unlicensed person. b. A broker who is employed by or affiliated with another broker shall not employ or have affiliated with him/her any salespersons within the business entity. c. Broker is responsible for salesperson's license law violations. d. A broker shall display a copy of their license in a conspicuous location that is readily observable to the general public No broker shall also be licensed as a salesperson nor shall any salesperson be licensed as a broker f. Any broker operating under a business or trade name (doing business as) shall provide the Board with written notice of such name. g. Broker must notify the board of the names, addresses and license numbers of all brokers or salespersons engaged by the broker at the time the affiliation begins and ends. Rule 2.03 :( 17). h. A broker may not hire salespersons while employed by another broker. 2.03 :( 11). i. The license of a real estate broker who is employed by another real estate broker must show as his or her business address the business address of the broker by whom he or she is employed. Rule 2.03 :( 9). j. Brokers shall furnish the Board with the names, addresses and license numbers of all brokers and salespeople engaged by them at the commencement of such association or affiliation and shall further notify the Board of the termination of such relationship at the time such relationship is terminated. k. Withhold FICA and income taxes

Licenses to business organizations. Corporation, Society, Association or Partnership (CSAP). 87UU. (II. LICENSING REQUIREMENTS - 87PP)

a. File a $5,000.00 surety bond. b. Require all officers, directors and partners who actively act as real estate brokers to be individually licensed. c. Designate one officer or partner with a broker's license to represent the company. Designated broker must work exclusively for the company unless given written permission by the company to work on his or her own. 1) In the event of death, disability or severance of the designated broker, the CSAP has one year to appoint a new designated broker.

Broker Certification. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

a. Must personally certify the accuracy of all submitted documents. b. Must certify that the promotional material reasonably portrays the facts observed at and in the vicinity of the development.

Report of findings of the Board. (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

a. Publishing cost is paid for by the broker. b. The broker prior to signing a contract must give a copy of the report to each prospective purchaser or lessee. c. A receipt for receiving a copy of the report must be obtained by the broker and retained in the broker's files for three years. d. The Board's report may not be used for advertising or sales promotion.

Rejection by Board. Rule 2.05 :( 5). (OTHER (LICENSE) REQUIREMENTS FOR REAL ESTATE BROKERS, CORPORATIONS AND LLC)

a. The Board may refuse to allow the offering of the property if it finds that the offering is not in the best interest of the public. b. If the Board refuses to permit the offering, the applicant may be granted a hearing at the discretion of the board.

Reciprocal Licensure. T Licensure 254 CMR 2.00

he Board may issue a real estate salesperson or broker's license to individuals licensed in other states or jurisdictions without requiring the satisfaction of the education and examination requirements where such other state or jurisdiction has laws similar to the Commonwealth governing the practice of real estate brokering and extends the same privilege to licensed Massachusetts real estate brokers and salespersons. Applicants for reciprocal licensure shall apply on the form provided by the Board and pay the prescribed fee.

Professional Standards of Practice

violation of any of the provisions of 254 CMR 3.00 may result in the suspension, revocation or discipline of a license