MASSACHUSETTS PORTION OF REAL ESTATE EXAM TEST

MASSACHUSETTS PORTION OF REAL ESTATE EXAM TEST

Flashcards

A SALESPERSON LICENSE1. DOES HAVE TO BE DISPLAYED2. DOES NOT HAVE

TO BE HELD BY THE EMPLOYING BROKER3. DOES

NOT HAVE TO BE RETURNED TO THE BOARD WHEN

THERE IS A CHANGE IN BUSINESS ADDRESS.

UFFILicensees may not refuse to list a residence containing UFFI unless the indoor ambient formaldehyde level is over 0.10 parts per million Lease termination1. Breach of covenants2. Expiration of covenants3. 14 day notice is required to terminate for non payment of rent.Rent must be accepted if offered prior to court eviction action.Maintenance of place of business1. Resident licensees must maintain a place of business in Massachusetts2. Nonresident broker license fees are not required to have a place of business in Massachusetts provided they are license in their own state and have a place of business in their own state SALESPERSON REQUIREMENTS AND LIMITATIONS 1. salesperson may be employed by one broker at a time.2.Salesperson needs to display license in a good location for the public to see3. May perform all functions of a broker with brokers approval4. No salesperson shall act like a broker and No broker shall act as a salesperson. Can be given a fine.5. Broker must engage the salesperson and the salesperson shall not conduct his own business6. Paid

a fee by the broker only**NOTE: A salesperson shall legally

accept a bonus from the broker.. and if the broker refuses to give the bonus then the salesperson can sue for collect7.Must notify the board of any change of business

address**NOTE: Neither a salesperson nor a broker has to

be actively employed to maintain a license Sherman antitrust actProhibits many business practices that could unfairly restrict marketplace free competition some of these include;1. No price fixing2. Real estate companies cannot offer services in only particular areas3. Companies cannot consciously direct business away from other real estate companies4. Sales person/brokers cannot create organizations that unfairly exclude qualified brokers from having access to marketing and sales information RecordkeepingBrokers are required to maintain accurate records of all escrow deposits and withdrawals and other pertinent information concerning each transaction

Filing requirementPrior 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.Suspension, Revocation, Refusal to Renew License 10. Committed any act expressly prohibited by license law.11. Found guilty of blockbusting (panic peddling) and Commission against discrimination (MCAD)12. Accepted a NET LISTING from a prospective seller The closing agent1. Ensures signatures of correctly executed2. Make sure the copies are made and distributed to appropriate parties involved3. Issue checks if applicable4. Forward the deed to be recorded

LICENSURE: 254 CMR 2.005. LICENSE FEES6. EXPERIENCE REQUIREMENT FOR

LICENSE AS A BROKER7. MORAL CHARACTER8.

PERSONAL APPERANCE

LICENSURE: 254 CMR 2.009. QUALIFICATION REPORTS10. SURETY BONDS11.

BUSINESS ENTITIES12. LLC,LLP INSURANCE13.

RECIPROCAL LICENSURE

Licensing Requirement: Persons or organizations not

required to be licensed (87QQ)

• Persons/employees dealing with own property2. Persons

dealing in real estate when performing some official act as required by their office/profession (auctioneer, stockbroker, attorney, sheriff, admin, executor, trustee, guardian, or other acting under a will or court order)3. A property manager or employees unless paid an additional fee for selling the property4. A state or federally chartered bank, credit union, mortgage company, or insurance company, or its regular employees Title 5Regulation that protects you and your community. Title 5 requires the proper sitting, construction, and maintenance of all on site wastewater disposal systems.

STATUTORY REQUIREMENTS GOVERNING THE

ACTIVITES OF LICENSEES: Sharing of fees

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 MGL.

112 87QQ

Display of license1. Brokers are required to display license in place of business or branch office to general public2. Sales persons licenses are required to be publicly displayed

LICENSURE: 254 CMR 2.0014. LICENSE RENEWAL15. CONTINUING EDUCATION

REQUIREMENT16. SINGLE LOCATION AUTHORIZED17.

AUTHORIZED AGENTS

Promotional out of state property1.application for approval by the boarda. filed by the brokerB. Filing fee paid by the developer2. Questionnaire =

submitted to the board by the broker on behalf of the owner/developer3. Broker certificationA. must personally certify the accuracy of all submitted documentsB. Must certify that the promotional material responsibly portrays the fax Observ at in in the vicinity of the development4.

On-site inspection: The developer is required to make an

advance payment to cover the cost of an on-site inspection by the board5. Report of findings of the boardA. publishing cost is paid for by the brokerB. The broker prior to signing a contract must give a copy of the report to each prospective purchaser or LesseeC.A receipt for receiving a copy of the report must be attained by the broker and retained in the brokers files for three yearsD. The board report may not be use for advertising or sales promotion6. Rejection by board = 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 publicA. If the board refused to permit the offering, the applicant may be granted a hearing at the discretion of the board7. Broker of record; The owner/developer must employ a Massachusetts license real estate broker in order to engage in the sale or lease of out of state land in Massachusetts

Party wallsA party wall is located upon or at the division line between the properties of adjoining landowners and is shared by both in the construction and support of their respective buildings NOTICE OF HEARING REQUIREMENTSA. 10 day notice in writing to all partiesB. Notice must contain the grounds for the complaint and a copy of the complaint or charges Fine/Imprisonment: Chapter 112: Section 87CCC "Individuals performing work without a license may be assessed a civil admin penalty not to exceed $1000 for the 1st violation and $2500 for the 2nd violation and any subsequent violations" Apartment listing service requirement1. Purpose = to protect the public from being harmed as a result of the activities of rental listing services, which charge fees for providing apartment listings2. Customer assurances=A. That the listings are legitimateB. That the listings conform to the customers requirementsC. That the listings are currently available to renters Legal adviceBrokers and salespersons are not permitted to give legal advice and are forbidden to advise against the use of the services of an attorney in real estate transaction

STATUTORY REQUIREMENTS GOVERNING THE

ACTIVITES OF LICENSEES: ADVERTISING

A BROKER SHALL NOT ADVERTISE IN ANY WAY THAT

IS FALSE OR MISLEADINGProhibited advertising1. Blind advertising2.sales person advertising3.discriminatory advertising Unfair inducements1.inducing a party to break a real estate contract or lease for personal gain2. Engaging in blockbusting3. Making a substantial misrepresentation

STATUTORY REQUIREMENTS GOVERNING THE

ACTIVITES OF LICENSEES: Prohibited advertising

1. Blind advertising: containing only post office box number,

just a phone number or street number2. Salesperson advertising with their own name and not using the broker3.Discriminatory advertising Leases1. All leases, regardless of their term, must be in writing and signed by the parties in order to be enforceable2.

Recording requirement:A. Recording is not required for the

Validity of the leaseB. Recording a notice of lease is required for leases with a term of seven years or more from the date of execution in order to be enforceable against the new owner who does not have actual knowledge of the lease prior to taking title3. Termination of lease hold interests=A. Tenancy at will- notice requirement1. 30 day notice by either party is required to terminate a Tenancy at Will. EXCEPT for non payment of rent2. 14 day notice to terminate is required for nonpayment of rent the rent must

be excepted if offered within the 14 days**NOTE: The 30

day notice requirement and security deposit log do not