MA Real Estate Licensing Law question Set Flashcards

MA Real Estate Licensing Law question Set Flashcards Brokers under MA law must maintain signed agency

disclosure agreements for:

• yearsReal estate agents must provide prospective buyers

and sellers the mandatory agency disclosure notice developed by the Board. The employing broker must keep a copy of the notice for 3 years.If a real estate salesperson wishes to advertise him or herself in the local newspaper, what information must he or she include in the ad?Name of his or her brokerage Brokers must maintain records of property availability for 3

years after their advertisement to prevent:

Bait and switchBrokers must maintain records that reflect the availability of properties at their time of advertisement in order to prevent bait and switch tactics (when the broker advertises a property that is not available to generate leads).Avery is a licensed real estate agent who is buying a multi family property as an investment. When Avery meets the listing agent, Jack, at the open house what should be done in order to avoid a potential conflict of interest?Tell Jack that Avery is the buyer and write it down on the sign in sheet.Conflicts of interest should always be disclosed in writing. The best thing to do is to tell the listing agent and indicate it in writing to avoid any licensing law violations.Lauren is the listing agent for a $7,500,000 penthouse in the Seaport District. Within the first week there are three interested buyers. Lauren gets a call after the first showing from a buyer's agent named Jill. Jill informs Lauren that her client is meeting at the office at 5pm to write up an offer and she'll get it to Lauren as soon as they are finished.About 4pm, Lauren gets another call from Janet who is also a buyer's agent. Janet informs Lauren that she has a a verbal offer from her client for $7,000,000 with a 30 day closing date and a financing contingency with a 50% down payment. What should Lauren do next?Relay the verbal offer to the seller, along with the news that there could be a second offer.All offers, verbal or written, must be presented to the client as soon as they come in to the agent. It would be fine for Lauren to tell the seller that another offer might be arriving, but she is still required to relay the verbal offer immediately and not wait on other offers to arrive before contacting the seller.How many members comprise the Board of Registration?5There are 5 Board members. 3 are brokers with 7+ years experience, and 2 are members of the public.Which is true about Board of Registration hearings for accused real estate salespersons?They are held at a place of the Board's choosing.The Board will hold a hearing at a place of their choosing, usually their offices at 1000 Washington Street in Boston.Agents are provided 10 days' notice of the hearing.The Board has subpoena power and may call witnesses.Agents may have legal representation, but they are not provided with an attorney.From whom may a licensed salesperson receive compensation or commission?The employing brokerAll money paid to the agent must come from his or her employing broker.Salesperson Gretchen acquires a new rental listing and advertises it on one of her social media sites. She includes

her name and personal contact information in the ad, along with photographs of the property. Has she risked her license?Yes, because salespersons are prohibited from advertising under their own name only.This is an example of blind

advertising, which is prohibited. Blind advertising is when a salesperson fails to include the name of their brokerage in their ads and instead advertises under their own name only.Who is legally entitled to hold an escrow deposit?SellerEscrow account deposits are the client's money.Legally, the seller is the ONLY person entitled to hold escrow money, though the seller's broker or their attorney often holds the deposits on the seller's behalf so long as they have written consent.The real estate Board is made up of the following EXCEPT:An annually selected chairperson.The Massachusetts Real Estate Board is made up of three real estate brokers with at least seven years of experience and two unlicensed persons ("lay people") who represent the public. One of the members is appointed the chairperson.All members of the Board are appointed by the governor and have five year terms, including the chairperson.The chairperson is NOT selected annually.Agency disclosure documents must be kept for: 3 yearsReal estate agents must provide prospective buyers and sellers the mandatory agency disclosure notice developed by the Board. The employing broker must keep a copy of the signed notice for 3 years.How must buyers be notified of the agency relationship at an open house?By sign, poster, literature, or property description forms.Open houses do not require a written notice for each prospective purchaser or seller who attends the open house; however, agents must - by sign, poster, distributed listing literature, or property description form - conspicuously disclose their agency relationship with the seller.Summer, Winter, Fall and Spring all meet at a bar.Summer, the real estate agent gets to the bar first and orders a beer. Winter, a friend of Fall's arrives second and orders water. Fall and Spring, the buyers arrive 15 minutes later and order a round of drinks to celebrate that they finally found their dream home. After a few hours, Summer and Fall are intoxicated and the offer to purchase is drafted by Summer and signed by Spring and Fall. Who is in violation of licensing law?Summer.Since Summer is the real estate agent, and is intoxicated while acting as a real estate licensee, they are in violation of Massachusetts licensing law.Who can receive compensation directly from the principal?Employing brokerAll compensation payable to a salesperson must come from the employing broker only.Any money given to a salesperson by the client (principal) must be accepted on behalf of the broker and immediately delivered to the broker.Tom hires Chad to sell his home. Tom tells Chad he wishes to sell for $150,000, and anything over that price Chad may

keep as his commission. This agreement is:

A net listing, and illegal.This is an example of a NET LISTING, which is ILLEGAL in Massachusetts. A net listing is a listing where the commission is not specified. Instead,

the owner agrees to pay the broker a commission equal to any excess above a fixed, specified sales price, below which the owner refuses to sell.