REAL ESTATE LICENSE LAWS ► CHAPTER 10 © 2009 South-Western, Cengage Learning

REAL ESTATE LICENSE LAWS ► CHAPTER 10

© 2009 South-Western, Cengage Learning


5 members appointed by Governor 3 - active brokers for 7 years

2 - representatives of the public

no salary but expenses paid

annual report to Governor

conducts investigations and hearings


owner of property management agent licensed auctioneer securities dealer public officer or employee attorney-in-fact lawyer (only in normal course of practice) trustee, executor, etc. bank or insurance company


rentals require real estate license

only licensee can realize/recover commission/fee

SALESPERSON cannot operate a business may affiliate with only 1 broker receives remuneration only from broker is employee or independent contractor

BROKER responsible for salesperson completes transaction has vicarious liability


lifetime license licensing examination attorney requirements 18 years of age classroom requirement: salesperson (24) • broker (30)

broker license - 1 year experience license fee term of license moral character broker $5,000 bond

Real Estate


• broker’s license only

• assignment of broker’s license


1 year, temporary license

no examination

$5,000 surety bond required



• notification to Board of affiliation

• sharing of fees

• attorney services

• dual agency

• subagency

• facilitation



escrow account

record keeping

salesperson or employed broker cannot hold funds


must act in best interest of client at all times

personal interests

DISCLOSE! DISCLOSE! DISCLOSE!

net listing (both sales and rentals)

options or option listing

convey ALL offers


✖ violation of license law

✖ obtaining license with false information

✖ practicing impaired by drugs, alcohol, etc.

✖ practicing with invalid license

✖ knowingly engaged in misrepresentation

✖ acting as licensee and undisclosed principal

✖ acting for more than 1 party without consent of all

(slide 1 of 4)

© 2009 South-Western, Cengage Learning(slide 2 of 4)

✖ failing to properly account/transmit funds of others

✖ paying commissions or fees to unlicensed persons

✖ undisclosed commission, rebate or profit

✖ inducing breaking of any contract for personal gain

✖ comingling of funds or property

✖ failure to provide signed P & S to buyer and seller

✖ participating in blockbusting

✖ accepting a net listing


✖ discriminating against any protected class

✖ aiding anyone to obtain a license by false pretenses

✖ assuming duties where competency does not exist

✖ failure to comply with any federal or state laws

✖ conviction of a criminal offense in any state

✖ failure to report a criminal conviction within 30 days

✖ fraudulently certifying C/E educational requirements

✖ failure to comply with non-MA land development law

(slide 3 of 4)


✖ finding by MCAD - licensee committed an illegal act during practice of real estate

✖ Board empowered to administer & enforce license law

✖ Board has power to issue summons

✖ no license suspended or revoked without Hearing

✖ minimum of 10 days notice for Hearing

✖ Board decision appealable - Superior Court within 20 days

(Slide 4 of 4)


• must be annually registered with the Board

• the Board has power to inspect property

• required employment of Massachusetts broker

• broker must notify the Board of employment

MARCO

ISLAND

Condos,

Time-

shares,

Fraction

al

Ownersh

ip


• 12 hours preceding 24 months before renewal

• 6 two-hour modules of Board approved curriculum

• 6 of the 12 hours must relate compliance with laws

• schools maintain compliance records

• licensing courses do not satisfy C/E requirements

• lawyers licensed in Massachusetts are exempt


☒ renewal fee paid - but no C/E

☒ prohibited from practicing real estate or commissions

☒ may receive referral fees from any licensed brokers

☒ sole requirement to reactivate: 12 hrs C/E


• reciprocal licensee - C/E in any state where licensed (if Massachusetts license obtained without examination)

• examination in Massachusetts requires C/E in MA


• License prominently displayed

• Prompt notification to the Board ofnew/additional location


• home inspection brochure provided to buyer prior to P & S

• only recommend ALL licensed home inspectors in MA

• ONLY exception is buyer agent with written agreement


• written fee disclosure to prospective tenant

• first personal meeting, prospective tenant, specific property

• licensee must sign, date, insert license # (retain for 3 years)

• prospective tenant must be asked to sign (but not required to sign)

KEY TERMS


apartment rentals

Board of Registration

continuing education

escrow account

inactive status

reciprocal license

rental fee disclosure

Documents

REAL ESTATE LICENSE LAWS ► CHAPTER 10 © 2009 South-Western, Cengage Learning