Massachusetts real estate laws and real estate board rules

surety bonds (Licensing requirements)

$5000 broker surety bond 1. every broker is requiered to file with the board a $5000 bond for the benifit of any person harmed by the loss of funds held by a broker

1Licensing requirements

...

requirements governing licensees

...

duties and powers of the board of registration of real estate

... to protect the public interest

advertising (requirements governing licensees)

1. a broker shall not engage in false of misleading advretising, records of advertising must be keeped to prove property was avalible 2. Blind advertising: broker ads must include name of broker salespeople are prohibited from advertising under their own name, but ads may name a saleperson as the contact for the agent 3. Discrimiatory advertising prohibited: no add shall discrimiate against anything

home inspectors-licensee responsibility (requirements governing licensees)

1. a sellers agent may only give a buyer the list of all licensed home inspectors and state consumer protection brochure. a buyers agent with a written agency agreement with the buyer may recommend a particular home inspector

maintenance of place of business (requirements governing licensees)

1. any compensation to sales person must go through broker first 2. no sales person is allowed to work for more then 1 sales person at the same time

handling of documents (requirements governing licensees)

1. escrow records shall indicate the date and from when the broker recived the money. every broker shall keep the check for 3 years from the date of the issuance.

handling of monies (requirements governing licensees)

1. the only person legally entitled to hold a deposit is seller. 2. a sales person shall immediately turn over all deposit money recived to the employing broker. no sales person can hold clients money

commissions (requirements governing licensees)

1.A broker may not collect a commission from both buyer and seller without their prior knowledge and concent 2.real estate agents commissions are established by agreement of agency/ client

record keeping (requirements governing licensees)

1.records of advertising must be keeped to prove property was avalible 2.escrow records shall indicate the date and from when the broker recived the money. every broker shall keep the check for 3 years from the date of the issuance. 3. the form deposet must be clearly shown on all offers and sales contracts

board notifications (Licensing requirements)

1.when the board is notified that a sales person is begining work 2.non-resedence may be licenced as agents if they file a written power of attorney with CHAIR OF BOARD to accept the legal summisons 3. death of sole propietor: 4. 2 or more brokers occupy the same buisness the board must be notified 5. if someone has a nickname or something that they go by the board must be notified of a DBA (doing buisness as)

eligibility of licensing (Licensing requirements)

18 years or older 40 classroom hours approved by the school pass the writton state exam

legal advice (requirements governing licensees)

No real estate agent shall advise against the use of the services of an attorney or provide legal advice

sanctions. (duties and powers of the board of registration of real estate)

a) Fines: 1. whoever, without being lisenced acts as a broker ot sales person will be fined $500 by court of law B) licence suspension and revocation 1. a lisence which is found to be false or fradulent 2. 1. an agent must fully disclose to client if they have any kind of relationship with the other people involed in the deal 3. if you are working for both the buyer and the seller you must disclose this information 4. proved to have violated the fair housing laws (automatic suspention)

disclosures (requirements governing licensees)

a) consumer/lisence relationship 1. an agent must provide a notice that is approved by the board to disclose the repationship of the agent with the prospective purchacer or seller this notice is provided at the first personal meeting 2. seller if in a dual selling/buying must provide to both of them a diclocure contract and keep it 3 years from that date 3. if a person decides to decline the dual agency then the broker must indicate the date the notice was given to them and if the person has a reason then they must state that reason. 4. agencys must know that they cannot communicate any private clint information b) conflict of interest 1. accepted, given or charged any undisclosed commisson, rebate or profit on expenditures for a proncipal c) rental fee disclosures 1. agents renting resedential property must provide prospective tenant with a written notice at the first meeting which states wheather the tenant will pay any fee for such service, the amount, the manner and time in which it is to be paid and whether any fee will be payable if a tenacy is not created. the tentent must agree to pay the fee.

types of licenses (Licensing requirements)

a)active: begins when board is notified in writing of sales person association with a broker. employing broker must furnish board with names, adresses and license numbers of all licensees engaged by broker b) inactive: they still can make refurals c) expired: an agent who does not take continuing education (CE) or pay fee has an expired license and cannor work or recive commision

examination of records (duties and powers of the board of registration of real estate)

both buyer and seller must agree when money is removed from escrow account. a disput requiers court order or settlement by the parties not dicretion of the broker.

Broker/salesperson relationship (requirements governing licensees)

brokers may work independently, but salesperson must work under a broker as either an employee or an indepemdent

rentals (requirements governing licensees)

brokers shall maintain all rental listing and written documents that demonstrate the avalibility of an apartment at the time it was adertised for three years from the date on which such apartment is rented.

agency and non-agency relationships (requirements governing licensees)

do not need a license: 1. transactions for themselfs 2. owners of that property 3. appraisers, home inspectors, mortgage brokers ext 4. public offecers attorney-in-fact: person acting under a written instrumnet called power of attorney, notarized and recorded is not valad after dealth

license renewal and continuing education (Licensing requirements)

licenses are renewed every 2 years on agents birthday. all agents must complete a 12-hour continuing education (CE)each renewal period to keep active license

activities requiring a license (Licensing requirements)

massachusetts law states that advertising pr engaged in selling, purchacing and dealing, renting leasing and negotiating, exchanging and if they recive any value of this transaction then you must have a licence

hearing and appeals (duties and powers of the board of registration of real estate)

the board has power to conduct public hearing upon written complaint or on its own initiative without reason 1. unfavorable decisions may be appealed within 20 days to a superior court 2. while under appeal, licence must be forwarded to board within 7 days of receip of notice of suspension.