Massachusetts Licensing Law and Board Regulations
Massachusetts licensing and Board regulations
This domain tests the statutory and regulatory framework for real estate licensees in Massachusetts: who must be licensed, how licenses are obtained and renewed, what agency disclosures are mandatory, and how the Board enforces escrow and recordkeeping rules. Expect questions on salesperson-broker distinctions, continuing education, and the consequences of unlicensed practice.
Core rules
- A salesperson must be affiliated with a licensed broker; a broker may operate independently. Salesperson pre-licensing is a 40-hour course; broker pre-licensing is a 40-hour broker course plus three years of experience as a licensed salesperson.
- Licenses renew every two years. Continuing education is 12 hours per cycle, including at least 2 hours of agency law and 2 hours of ethics.
- At the first personal meeting with a prospective buyer or seller, a licensee must provide the written Massachusetts agency disclosure form. If there is no personal meeting, disclosure is required before the consumer signs an offer.
- The form explains seller's agent, buyer's agent, dual agent, and facilitator (a non-agent who assists without representing either party). Dual agency requires the written informed consent of both parties; designated agency is permitted with written consent.
- Brokers must maintain a separate escrow account for client funds, deposit receipts within three business days, and keep transaction records for three years. Commingling is prohibited.
Worked example
A salesperson at a firm that represents the seller meets buyers at an open house. Before discussing the property, the salesperson must give the buyers the agency disclosure form. The buyers are told the firm represents the seller and that the salesperson can act as a facilitator or, with written consent, as a dual agent. If the buyers later want the salesperson to represent them, the firm must obtain written consent from both seller and buyers before any dual agency begins.
Traps
Assuming disclosure can wait until the offer; it is triggered by the first personal meeting. Letting a license lapse while still practicing. Treating escrow funds as operating cash. Forgetting that facilitator status is not agency.