MA Real Estate Law and Regulations Q&A

One year following the termination or expiration of such registration

For how long must the owner/developer of the out of state property keep a copy of the registered Board report?

At least 3 years

For how long should an authorized school maintain the records of continuing eduction?

for 3 years from the date of the rental

For how long should brokers maintain all rental listings and written documents that demonstrate the availability of an apartment?

At least two years following the completion

For how long should the school maintain the records for each individual ?

2 years from the date of completion

For how long will the certification of the required eduction be valid for?

60 days

For the first offense of Fair Housing Law, the license of a salesperson will be suspended by the Board for a period of _____________ in addition to actions imposed by the court.

1) By majority vote 2) In writing 3) Give reasons for action.

How are the Board's decision made?

The Board consists of 5 members, 3 actively engaged in real estate (licensed brokers for past 7 years and 2 who are citizens, represent the public).

How is the Board composed?

30 days

How long does a broker/ salesperson have to report to the Board about his conviction of any crime?

5 years

How long is each Board's member's term?

At least 3 members

How many members shall the quorum consist of?

On the form provided by the Board and also pay the prescribed fee

How must applicants for reciprocal licensure Apply?

Annually

How often should the registration of the out of state property be renewed ?

Biennially (Every two years)

How often should the school renew their authorization?

On forms furnished by the Board and shall be accompanied by the prescribed fee.

How should the application for licenses be made?

One year

If a licensee has allowed her license to expire, how long does she have to reinstate it without paying a penalty?

80 percent

If one has maintained a good credit record, a homeowner can terminate Private Mortgage Insurance when the remaining loan balance is ________ or less of the original loan amount.

not required

If the buyer's agent and seller's agent are both from the same brokerage and have both consented to Designated Agency, then a separate consent of dual agency to the appointing broker is?

Take the exam again and pay the prescribed fee

If the required fee is not paid within the specified time period the individual shall be required to?

The balance of the first year's interest or three months interest, whichever amount is less.

In Massachusetts, the prepayment penalty may not exceed?

1) A person doing business for himself or his regular employee 2) A manager of real estate (salaried) 3) A licensed auctioneer

In accordance with the law who in the Real Estate business does NOT require areal estate license (1-3)?

4) Trustees 5) Public officer or employee 6) A person acting with a power of attorney

In accordance with the law who in the Real Estate business does NOT require areal estate license (4-6)?

7) Lawyer 8) Someone acting under court order 9) Banks or credit unions

In accordance with the law who in the Real Estate business does NOT require areal estate license (7-9)?

post office box number, telephone, facsimile, electronic email, or street address appear.

In advertising - no broker shall insert advertisements in any publication where only a ?

20 years

In order to establish an easement by prescription in Massachusetts, continuous, open and notorious use must be established for?

A certification stating that the required eduction of 40 hours has been completed

Prior to taking the exam, What must the applicant submit to the Board?

1) Negligence 2) Wrongful acts 3) Error and omissions

The insurance must cover?

7 days

A broker acting on behalf of an owner or developer of an out of state property must notify the Board in writing of such status within_________ of accepting the client

honestly, ethically and in the best interests

A broker or salesperson must act ____________ of their client at all times

Net listing, unspecified

A broker or salesperson must not accept a _________ from an owner or landlord for sale/rental in which the commission is __________

False and misleading

A broker shall not advertise in any way that is?

option

A broker shall not take an ________ either directly or indirectly

Sent to each interested party

A copy of the Board's decision shall be?

30 days

A criminal conviction and the broker's failure to notify the Board within __________ violated the Board of Registration of Real Estate Brokers and salespersons regulations.

Hearing

A licensee has a right to a ________________ before losing his license ?

A licensed Broker

A salesperson must work for?

1) Be employed or affiliated with a license broker for at least 3 years. 2) Be employed or affiliated with a licensed broker for a minimum of 25 hours per calendar week 3) Obtain licensure as a broker within two years of the date that such employment or affiliation as a real estate salesperson is terminated

A salesperson seeking licensure as a real estate broker must?

Varification of compliance

An LLC or LLP may be required to provide ______________ with 254 CMR 2.00(12)

5 business days

An LLC or LLP must notify the Board within ______________ if the insurance coverage is canceled or interrupted

Ghosts, murders, and suicides

According to Stigmatized Property Law in Massachusetts, a real estate agent has no affirmative obligation to disclose? ghosts, murders, and suicides.

The name of the real estate broker

All advertisements must include ?

Inspection by the Board or it's agents

All escrow funds and records shall be subject to?

Immediately deposited in a bank escrow account

All money of whatever kind and nature paid over to a real estate broker to be held during the pendency of a transaction must be?

Be conveyed immediately to the owner

All offers submitted to brokers and salespeople regarding a sale or rental must?

The broker deposits and maintains the money of other parties in a real estate transaction

An Escrow Account is an account where.... ?

The broker must make a proper account of such interest at either the consummation or termination of the transaction

An escrow account may be interest or non-interest bearing, what must the broker do when it is an interest bearing account?

30 days

An individual who passes the exam must pay the prescribed fee within ________________from the date of notification

$500

An unlicensed person operating illegally can be fined up to?

1) Reporting to other prosecuting officers 2) Summoning witness and records 3) Examining witness and records

Any necessary action to enforce provisions of the law may be taking including?

Re take the exam for the prescribed fee

Anyone who fails the exam may?

A court decision is given in the licensee's favor.

Appeal does not stop Board actions unless and until ?

The office of the Board for an interview

Applicant may be required to appear at?

Employ or have affiliated with him any salesperson within the business entity.

BROKER EMPLOYEE- A broker who is employed by or affiliated with another broker shall not?

Action by other law enforcements agencies

Board action in no way exempts a person from?

The Superior Court

Board decisions may be appealed to?

A. Four meetings per year B. Written records

Board's Meeting are held ________ per year? What must be kept for all meetings?

Provide the Board with a written notice of such name

Business Name- Any broker operating under a business or trade name must?

No

Can a broker/ salesperson advise against the use of an attorney in any real property transaction?

NO

Can a licensed salesperson have his own real estate business?

No

Can a sales person work for more then one Broker?

No! He can only receive commission from his Broker

Can the salesperson receive commission from other people?

In writing

Complaints made to the board should be?

There is a bad faith

Cost of the appeal will not be charged unless?

A. Examine Records B. Conduct Investigations C. Hold Hearings

DUTIES AND POWERS OF THE BOARD OF REGISTRATION

In a conspicuous location that is readily observable to the general public

Display of license- How should each broker and salesperson display a copy of their license?

1) One individual 2) Authorized agent

Each authorized school must designate _____________ as an _______________

Disciplinary action

Failure to provide such required notice (regarding the canclation of the insurance coverage ) will subject the LLC and LLP to?

Two years

For how long is the school authorizations valid for?

1) each check deposited into and withdrawn 2) Three years

Each broker must also keep a copy of_________________ from the escrow account for a period of_______ from the date of issuance?

Be separately authorized

Each location at which the school operates must ?

3 years from the date on the notice

For how long must the agent/broker keep a copy of the signed disclosed agency?

The recommendations of 3 reputable citizens, not related to the applicant and must attest that the applicant bears a good reputation for honesty and fair dealings.

Moral Character. Applicants for a license shall be accompanied by?

Unlawful discrimination against any individual or group

No broker shall advertise to purchase or sell any real property in any manner that indicated directly or indirectly ?

The owner or developer of such land registers the property with the Board

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?

A licensed broker in the commonwealth and designated as the broker of record for the entity.

No broker's license shall be issued to a Corporation, LLC , society etc (Business entity) unless the officer is such an entity is?

The bond (Surety bonds)

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

promotional advertisement

No interest in any real property located in an out of state property development shall be subject to any?

A. Corporation, LLC, LLP or society B. The entity is licensed by the Board.

No licensee may engage in the business of real estate brokering in a form of ________________ unless _____________?

1) Names, addresses, and license numbers 2) commencement of such association or affiliation 3) termination of such relationship

Notification to Board of Affiliation. Brokers must provide the Board with ___________1________ of all brokers and salespersons engaged by them at the ___2___________and must also notify the Board of the _____3______________ at the time such realtionship is terminated

Is currently registered with the Board and for one year following the termination or expiration of such registration

Once the Board issues a written report regarding the out of state property, that report will be kept on file with the Board during the time that the out of state property development .... ?

1) Sign the notice too 2) Indicate their license status (salesperson or broker) 3) Provide their license number 4) Date the notice 5) Give the original to the client and keep a copy

Once the client signs the agency disclosure what must the broker/salesperson do?

Must register the property with the Board on the form and pay the fee

Prior to promotion for sale an interest in a property located in another jurisdiction/state the owner/developer must?

Self-employed

Professional standard of practice - Salesperson can not be?

easily seen

Regarding agency disclosures- at an open house the written agency disclosure must be more _________ than any other written material

1) That the broker/salesperson will be representing both the buyer and seller 2) that the broker/salesperson will stay neutral with regard to any conflicting interest between seller and buyer 3) that the dual agent will not have the ability to fully satisfy the duties of loyalty, full disclosure, reasonable care and obedience 4) the duty of confidentiality will continue after the termination of the brokerage relationship

Regarding dual agency disclosure, what must this form of written consent clearly state?

Dishonest, fraudulent, criminal or malicious act of the insured LLC or LLP

The insurance required by 254 CMR 2.00(12) may provide that it does not apply to any?

Their own name

Salespersons are prohibited from advertising the purchase, sale, rental or exchange of any real property under?

1) paid to or shared by an owner's managing agent or it's employees 2) licensed brokers or salespersons

Sharing of fees- No fee, commission or other valuable consideration shall be____________1______ as a result of the sale of real estate for the owner UNLESS such agent and his employees are _____2____

1) salesperson 2) broker

Single license requirement - No broker shall be licensed as a ____1____ nor shall any salesperson be licensed as a ______2____

1) A ready, willing and able buyer 2) A binding contract between seller and purchaser 3) Closing of title by the purchaser

The 1975 "Tristram's Landing" case in Massachusetts defined three elements that a broker must satisfy in order to claim a commission. What are they?

Suspend, revoke or refuse to renew a broker or salesperson's license. It also may reinstate licenses

The Board after investigation , may take action to?

An independent source pertaining to the individual's previous occupation

The Board may require each individual seeking a license to submit a report from?

Real Estate Commission

The Board of Registration of Real Estate Brokers and salespersons for MA is in most states referred to as?

currently licensed at all times

The broker of record must be______________ otherwise the license of the entity shall cease

1)Personally responsible 2) Entity and it's employees and agents

The broker of records must be responsible and in charge of the business entity and also must be_____________________ for the acts of the __________________

1) $50,000 2) The number of individual licensees employed, or officers of, the LLC. 3) $150,000 4) The number of individual licensees employed, or officers of, the LLC.

The insurance shall be in an amount for each claim of at least___________ multiplied by the ___________ and in an aggregate amount of at least___________ multiplied by______________________?

1) $300,000 2) $1,000,000

The requirements of 254 CMR 2.00(12) will be satisfied if the LLC or LLP maintains insurance sufficient to provide coverage of at least_________________ for each claim with an aggregate top limit during any year for at least _____________?

Complete the required continuing education of 12 hours

To renew a license after it's expiration one must ?

1) Misrepresentation (Knowingly) 2) Acting in Dual capacity of a broker and undisclosed principal in the same transaction 3)Acting for more then one party in the same deal without both parties knowing about it

What are the grounds for punishment by the Board which can result in suspension, revocation or refusal to renew any license (1-3)?

10) Violations of any other provisions of the law 11) Discrimination 12) Conviction of a criminal offense (which the Board considers a reflection on a licensee's moral character)

What are the grounds for punishment by the Board which can result in suspension, revocation or refusal to renew any license (10-12)?

13) Promotion and sale of out of state land within Massachusetts is subject to Board review. 14) Affirmative soliciting for sale, lease or the listing for sale of residential property, on the grounds of alleged change of value.

What are the grounds for punishment by the Board which can result in suspension, revocation or refusal to renew any license (13-14)?

4) Failure to properly account for or return escrow funds such as deposit money. 5) Paying unlicensed persons 6) Making a secret profit while acting as a broker

What are the grounds for punishment by the Board which can result in suspension, revocation or refusal to renew any license (4-6)?

7) Persuading someone to brake a contract for personal gain 8) Mixing of escrow funds with personal money 9) Failure to give both buyer and seller a copy of the "Purchase and sales Agreement"

What are the grounds for punishment by the Board which can result in suspension, revocation or refusal to renew any license (7-9)?

1) Must hold a current Broker's license issued by the Board 2) Must have a minimum of two years of work experience as a broker involving at least 25 hours per week

What are the instructor qualifications for teaching at an authorized school (1-2)?

3) Must have co-taught or audited the curriculum in an authorized school before they can teach it. 4) Must have a minimum of 30 hours of instruction in an instructor training program which has been approved by the Board

What are the instructor qualifications for teaching at an authorized school (3-4)

They must pass a written exam conducted by the Board or it's agent and they must take a 40 hour course

What are the requirements for issuing a broker or salesperson license?

1) It can make rules which are not inconsistent with law 2) Has a seal 3) Must submit an itemized budget each year to the Governor

What can the Board do and must do ?

1) A copy of any check, money order and written cash receipt for any fees made by the tenant for at least 3 years

What else should the brokers maintain a copy of regarding the apartment rental?

Every Broker must keep record of funds deposited in his escrow account

What information about an escrow account must each broker keep?

1) Maintain records documenting the attendance of individuals - Names, the dates on which they attended and the date on which they completed the course.

What is required from the school's authorized agent (1)?

2) Ensure that only individuals who complete 40 hours education for salesperson/broker and 12 hours for continuing eduction are certified

What is required from the school's authorized agent (2)?

3) Notify the Board of any change in the address or tel number of the authorized school within 7 days of such change

What is required from the school's authorized agent (3)?

4) Ensure that only qualified instructors are permitted to teach the curriculum

What is required from the school's authorized agent (4) ?

All schools must submit their application on the form prescribed by the Board and submit the required fee

What is the application process for a Real Estate school to get authorization from the Board?

Must provide the Board with a written notice of their current business and residential address at all times.

What is the policy about address reporting regarding each broker and salesperson?

Makes and enforces the rules by which all real estate licensees must abide

What is the primary focus of the Massachusetts Board of Registration of Real Estate Brokers and Salespersons?

System of metes and bounds

What is the principal method of delineating property boundaries or legal descriptions in Massachusetts?

20 percent

What is the statutory usury ceiling on loans secured by real estate in Massachusetts?

Unit Deed

What kind of deed is used when conveying deed of a condo?

That he is a real estate broker

What must a broker disclose when advertising real property?

They must deliver their license to the offices of the Board within 7 days of the receipt of such notice

What must a broker/salesperson do upon notice their license has been suspended or revoked?

Make a notation indicating the date the notice was given and that the buyer/seller declined to sign it. Broker must maintain such notice for 3 years

What must the broker/salesperson do if the client declines to sign the agency disclosure form?

They must note the fact of such registration in all it's subsequent advertisements in the commonwealth

What must the owner/developer do once the Board registers an out of state property regarding advertising notice?

1) The date and from whom the broker received the money 2) Date deposited along with the source of the money 3) check number 4) Date of withdrawal with the name of the person receiving the withdrawal

What must the records of the escrow account clearly indicate?

Must notify the Board

What should a licensed Salesperson/broker do when he changes his address?

They must Immediately cease the practice of real estate brokering until it's in compliance

What should the LLC or LLP do in the case of cancellation or any other interruption with the required insurance coverage?

Provide the broker with notice of termination and provide the Board with written notice of termination

When a salesperson wishes to terminate an affiliation with an employing broker, what are the procedures that must be followed?

Before the formulation of a contract to purchase

When must a brokerage relationship as agent for a buyer or seller be determined and all agreements finalized?

At the time of their first personal meeting for the purpose of discussing a specific property.

When should the broker/salesperson provide the agency disclosure to the seller or buyer?

No later than prior to the execution of a written agreement for the purchase or sale of a property

When should the designated agency disclosure form be signed?

fully disclose in writing to all parties of the transaction their nature of their interest

When the broker or salesperson wishes to engage in a real estate deal where they or their kin have personal financial interest, they must?

Chapter 93A

Which act/chapter protects consumers in Massachusetts from fraudulent misrepresentation and unscrupulous behavior from a real estate agent?

6) A salesperson can not be self-employed 7) Notification to Board of affiliation 8) Sharing of fees 9) Advertising 10) Escrow Accounts

Which violation 254 CMR 3.00 may result in the suspension, revocation or discipline of a license (6-10)?

1) Address Reporting 2) Broker Employee 3) Business Name 4) Display of license 5) Single license requirement

Which violation may result in the suspension, revocation or discipline of a real estate license (1-5)?

Governor

Who designates the chairman?

The broker is responsible until the transaction is either completed or terminated

Who is responsible for any money deposited into an escrow account and for how long?

Persons whether licensed or not, acting as a broker or salesperson within Massachusetts.

Who may the Board investigate?

LLC and LLP

Who must maintain professional liability insurance?

Owner or developer

Who pays the cost of an inspection for the promotion of out-of-state property?

The owner or developer

Who shall pay for any inspection coast of out of state property conducted by the Board?

No

Will an applicant who is an attorney at law in the Commonwealth be required to take the exam?

1) The Department of Housing and Urban Development (HUD) 2) The Massachusetts Commission Against Discrimination

With whom should a complaint be filed when a person believes he or she has been a victim of illegal discrimination in Massachusetts?