Massachusetts License Law and Board Regulations
The licensing framework
Massachusetts licenses brokers and salespersons through the Board of Registration of Real Estate Brokers and Salespersons, within the Division of Professional Licensure. A salesperson must be affiliated with a licensed broker and may never accept compensation directly from a member of the public: the commission is paid to the broker, who then pays the salesperson. Salesperson applicants complete a 40-hour pre-license course, pass the exam, and be at least 18; broker applicants generally need three years of full-time salesperson experience plus a 40-hour broker course. Licenses renew on a two-year cycle with continuing education (currently 12 hours per cycle, with topic hours set by regulation).
Money and advertising rules
Deposits must be held in a broker escrow/trust account (or by an attorney or title company), never commingled with operating funds, with records retained for three years. Paying any part of a commission to an unlicensed person, including an out-of-state referral fee, is prohibited. Advertising must identify the brokerage, not merely the individual agent.
Traps
The exam loves these: 'The seller may pay the salesperson directly' (false, pay the broker); 'The Board sets commission rates' (false, commissions are always negotiable between the parties); 'The broker may borrow escrow funds if repaid' (false, no commingling or conversion). Another trap is assuming every task requires a license. An unlicensed assistant may answer phones, file, and hand out prepared information, but showing property, quoting terms, or negotiating is licensed activity.
Rule of thumb
If the task involves discussing price, terms, or property characteristics with a consumer, it requires a license.