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Frequently Asked Questions about Board of Registration of Real Estate Brokers & Salespersons

By the Division of Professional Licensure

As a buyer should I have my own broker to represent me?

The answer is really a matter of individual needs and desires. You can certainly submit an offer to the real estate agent representing the seller but if you want assistance in attempting to purchase a home it may be advisable to have a broker who only represents your interests. That broker, like any broker, must give you the written "Mandatory Consumer Disclosure" developed by the Board. The disclosure, among other things, explains the different types of representation (such as a seller’s broker, a buyer’s broker, and a dual agent) and the broker will disclose his/her representation of you as buyer’s broker. You can find the written disclosure at the Boards web site by going to www.mass.gov/dpl/boards/re

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How important is it that I understand the purchase and sale agreement in my purchase of a home and do I have any say in its terms?

It is very important that you not only understand the agreement but are comfortable with its terms. The agreement, a contract, controls the purchase and sale transaction. While they are printed by the professional organizations representing agents nothing prevents you from attempting to modify or negotiate contractual terms more to your liking. Of course the seller would have to agree to such terms. Also, you may want to pay particular attention to provisions dealing with the escrowing of deposit funds and what happens when both buyer and seller both claim such funds following a dispute. Additionally you may choose to more specifically define what types of things under the agreement can cause a dispute to minimize disagreement over whether there really is a bona fide dispute.

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My purchase and sale agreement notes that both I and the seller must act in good faith. What does that mean?

That’s a good question and here is where you may want to define more specifically what constitutes good faith or conversely what actions or omissions indicate bad faith. For example, the typical agreement states that a buyer must obtain financing to purchase the home within a certain number of days and failing to do so the buyer usually has to give written notice to the seller within a certain time period. Sometimes buyers and sellers argue over whether a buyer failed to act in good faith, given that the buyer only applied to one lender. A more advisable course would be to state in the agreement, with some specificity, what applying for financing actually means. You might want such a clause to read that the buyer need only make one (or two) applications for financing to a lender for a fixed rate mortgage of thirty years (or fifteen or twenty) not to exceed an interest rate of 7.5%. Doing this strengthens the buyer’s argument that in making two such financing applications, though not receiving financing, he or she complied with the agreement and acted in good faith. Naturally make sure you provide timely notice to the seller, in compliance with the agreement, where you are unable to obtain financing.

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Do I have to put a certain amount in deposit funds down towards my purchase of a home?

No you do not. Usually purchase and sale agreements seeks ten or twenty percent of the agreed upon purchase price in deposit funds. If you can negotiate a different amount with the seller put that in your agreement. Naturally as the buyer you want to put as little down as possible towards the deposit just in case a dispute arises with the seller and your deposit funds remain tied up in escrow during the dispute.

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Is it true that the most important thing in buying a home is liking it?

Well you could say that and that is an understandable view but keep in mind that many people who want to own a particular house often don’t consider how strapped they may be for cash for ordinary expenses. Sometimes people want a particular house so much that they tend to discount the fact that they may have so little cash left over that they have little money for routine expenses, let alone any entertainment. Eventually you will adjust to your new home and may grow to resent the fact that virtually all of your money goes into your house leaving little, if any, money for other things. Think carefully about the cost of home ownership, particularly the mortgage payment, property taxes, maintenance costs (electric and heating bills, water and sewer fees) and other household expenses. You don’t want to put yourself in the position of being strapped for cash.

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My license expired, how do I renew?

If your license expired less than 2 years ago, contact the Board office at 617-727-2373 and request a duplicate renewal. If your license expired more than 2 years ago, you must send the Board a written request for REINSTATEMENT. The request MUST include your name, address, social security number, date of birth and signature.

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I am already licensed in another state, can I use that license to get a license in Massachusetts?

Massachusetts has reciprocity or expedited licensure with all states except Vermont. Information on your specific state is available on this site at the rules and regulations option or by automated attendant at 617-727-2373. Select the option for becoming licensed (4)and then the option for, if you are already licensed in another state (2).

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I am an Attorney, How do I become licensed?

If you are a Massachusetts attorney in good standing, Massachusetts law provides that the Board may issue you a Broker license without examination, experience as a Salesperson or pre-license education. You do, however, have to file an application. To obtain an application you must first be qualified. Therefore, to start the process, submit an original certified record of good standing issued by the Massachusetts Supreme Judicial Court together with a check or money order payable to Comm. of MA in the amount of $52.00 and a cover letter that includes your mailing address and date of birth. After the Board reviews your standing an application will be sent. Attorneys from other jurisdictions must follow the regular course for licensure.

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What do I need to do to become licensed as a real estate salesperson or broker in Massachusetts?

To become licensed as a salesperson or broker in Massachusetts you must complete the requisite education, pass the relevant examination and complete the appropriate licensing application. At the outset you must become licensed as a salesperson before you can become a broker. To become licensed as a salesperson you must complete twenty-four hours of education at any one of the Board approved real estate schools (the education is in various subject matter areas). For a list of schools, visit see the list of Authorized Real Estate Schools in Massachusetts on this site. You can also check in your Yellow Pages under real estate schools.

Once your education is complete the school will provide you with a "Candidate Guidebook" which will contain verification of your completed education and information to make an appointment to take the salesperson examination. Examinations are offered twice daily Tuesday through Saturday in Boston and on Saturday’s at other sites in Massachusetts. All information to take the examination will be contained in the Candidate Guidebook. Upon passing the examination you will be licensed at the test center.

Those salespersons who seek licensure as brokers follow the same practice outlined for salespersons above. There are, however, two differences. First, those seeking licensure as brokers must complete thirty hours of education at a Board approved real estate school (that is in addition to the twenty-four hour salesperson education); and, Second, salespeople must work for a broker for at least one year before they can move on to licensure as brokers (the work experience must either be current or completed no more than two years prior to the time of broker examination and licensure).

If you would like more information on licensure please contact the Massachusetts Board of Registration of Real Estate Brokers and Salespersons at (617) 727-2373.

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Do I need to hire a real estate broker to sell my home?

No, you need not hire a broker. A homeowner can choose to sell his or her own home. A real estate broker is employed when the homeowner has decided to utilize the services of a broker in selling the home and that broker becomes your agent representing you. This commonly occurs when the broker enters into a "listing agreement" with the seller to sell the home

How do I know if I should hire a broker to sell my home?

This is always an individual choice. You need to assess your own needs and the cost in hiring a broker. Determine whether the services offered by a broker are what you are looking for and if you are satisfied with the fee a broker will charge for such services. Keep in mind that hiring a broker to sell your home for you means you do not need to do so yourself. While you naturally have to pay a broker for his/her services in selling your home there may be advantages to doing this. For example, aside from relieving yourself of the need to sell your home, having a broker advertise it for sale may mean it is reaching a wider audience. In fact, many brokers belong to listing services which means your home is advertised to all those brokers who are members of that listing service. There are many services brokers can offer you so please be sure to ask brokers what services they will offer you in selling your home and what that will cost you.

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Can I hire a broker to help me in buying a home?

Absolutely. Some brokers will work for the homeowner in selling the home (often referred to as a seller's broker) while other brokers will work for the buyer in helping to purchase a home (often referred to as a buyer's broker). If you hire a broker to work for you in buying a home that broker then is your agent representing you. You should check with the broker to determine whether the services you want are offered by that broker and what those services will cost you.

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Do real estate brokers and salespersons have to tell consumers who they work for?

Yes and they must do so at the moment they meet with such consumer and discuss a specific property(s). The real estate licensing board has an agency disclosure regulation which requires the broker and salesperson to give a written disclosure (developed by the Board) to a consumer at the first personal meeting they have with that consumer to discuss a specific property. The purpose of this disclosure is to avoid situations where consumers may assume that a broker or salesperson is working for them. Sometimes consumers may tell the broker or salesperson confidential matters assuming that the broker they meet with is working for them. When you deal with a broker ask them who they work for and remember if you meet with a broker to discuss a specific property they must give you the written agency disclosure form.

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Do real estate brokers and salespersons have any duties with respect to any deposit funds that I may pay over to them?

Yes. Any money that comes into the possession of a broker must be deposited into an escrow account when the broker receives it. Salespersons work for brokers and cannot have control or access to escrow funds. That is the responsibility of the broker. Those funds are held in escrow by the broker and remain there until that time when the purchase and sale transaction is consummated (the closing) or if the transaction terminates with no sale. At such time the broker must account for the money and remit it to the proper party (the buyer or seller). The money is not the brokers and may not be used by the broker for personal or business needs.

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-  Are brokers and salespersons required to complete continuing education?

Chapter 369 of the Acts of 1996 establishes twelve hours of continuing education in different subjects that are contained in a curriculum developed by the licensing board. The twelve hour requirement is for each license term (a license is good for two years). However, the Board does not begin verifying compliance with the continuing education requirement until January 1, 1999. At that time it will use the license renewal application to obtain verification from brokers and salespersons showing completion of continuing education. The licensing board is now involved in the process of notifying real estate brokers and salespersons of the new continuing education requirement. For a list of schools offering continuing education, see the list of Authorized Real Estate Schools in Massachusetts on this site.

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If I go to a broker to help me find an apartment, do I pay for that service?

If you hire a broker to assist you in finding an apartment you can be charged for that service. Always find out up front if you will be charged for such service since many times the landlord of the apartment is paying a broker to help find a tenant. Also, make sure you get in writing a description of the services the broker will offer in finding you an apartment and if you are charged a fee for such services when it will be due. If the fee is to obtain an apartment for you make sure you are only obligated to pay such fee if you, in fact, have an apartment (e.g. having a lease for the apartment signed by you and the landlord).

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I am an attorney, must I complete the continuing education requirement?

Licensed Real Estate Brokers who are Massachusetts attorneys in good standing with the Bar are exempt from the continuing education requirement. This exemption is only for Massachusetts attorneys. Massachusetts Real Estate Brokers who are attorneys in another state or jurisdiction must complete the continuing education.

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Who has to do continuing education and are there any exemptions?

All individuals licensed as real estate agents in the Commonwealth must demonstrate that they have completed the 12-hour continuing education requirement as a prerequisite to renewing their license as "active" (so they can work as agents) beginning January 1, 1999 (Massachusetts General Laws Chapter 369 of the Acts of 1996). If you have renewed in 1998, before continuing education became effective in Massachusetts, you will not need to complete continuing education until you renew your license on its scheduled renewal date in the year 2000. Those renewing their license during 1999 will, of course, have to complete the continuing education requirement in order to renew their license this year. Starting January 1, 1999 continuing education must be completed every time you renew your license, which is every two years. You must complete the 12-hour continuing education requirement by the time you are scheduled to renew your license in order to renew as "active". An "active" license entitles you to work. If you do not complete the 12-hour continuing education requirement by your scheduled license renewal date then the Board must, by law, renew your license as "inactive". You cannot work as an agent with an "inactive" license, though you may receive referral fees.

The new continuing education statute establishes one exemption from the new requirement. The exemption provides that Massachusetts attorneys who are currently licensed in good standing (not under any disciplinary action) and who are also real estate brokers are exempt from the continuing education requirement. Aside from this, a Massachusetts salesperson or broker who obtained his/her license in Massachusetts without examination based upon his/her licensure in another state (commonly referred to as reciprocity or reciprocal licensure) is exempt from the Massachusetts continuing education requirement, provided such agent completes his/her own state’s continuing education requirement (regardless of how may hours the other state requirement contains). If such agent fails to complete their own states requirement or there is no such requirement then they must complete the Massachusetts continuing education requirement to renew their license as "active" in order to work as an agent. A corporate or partnership broker is not considered an individual and, therefore, there is no continuing education requirement for these entities. However, the continuing education requirement does apply to the individual real estate salespeople and brokers affiliated with corporate and partnership brokers unless one of the two exemption noted herein apply to the individual licensee.

Lastly, if you were originally grandfathered into licensure in Massachusetts you still must complete the 12-hour continuing education requirement to renew your license as "active" (so you can work as an agent).

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When is my continuing education due?

If you wish to renew your license as "active" so that you may work as a real estate agent you must demonstrate that you have completed the 12 hour continuing education requirement anytime during the 24 months prior to the date on which you are scheduled to renew your license (license renewals are every two years on your scheduled renewal date). The license renewal application has been modified to obtain such data via a question concerning the completion of continuing education (question 2 on the renewal application. You either answer "Yes" if you have completed the requirement or "NO" if you have not completed the requirement. If you fail to answer the question your license will be renewed as "inactive", as noted in the instructions that are mailed with the license renewal application. The answer to this question, along with all the other information that you provide on the renewal application, is done so under the pains and penalties of perjury. Providing untruthful information may result in the suspension or revocation of your license pursuant to relevant law. By regulation the Board also requires the approved real estate schools offering the 12-hour continuing education curriculum to keep records for each individual licensee who attends such school.

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Does the 12-hour continuing education requirement consist of different courses?

Actually it is not a course though sometimes individuals refer to it as such. The 12-hour continuing education requirement consists of 12 hours of instruction in different subject matter areas (subjects) that were developed by the Board as a curriculum pursuant to the new law on continuing education. The Board approved real estate schools (providers) agree to use this 12-hour subject matter curriculum to provide the information in such curriculum to licensees. Therefore the Board does not approve any courses. Rather, it has established a 12-hour subject matter curriculum to be used by the Board approved real estate schools. Please see the list of List Of Authorized Real Estate Schools on this site which contains the school names, locations and telephone numbers. A number of schools have multiple locations and you should check with the school to see if there is a location close to you.

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If I renew my license as "inactive" (meaning I have not completed the continuing education requirement), must I wait until my next license renewal to renew as "active"?

No you need not wait until receipt of your next license renewal application. When you renew as "inactive" you will receive a notice (not a license) which will inform you of your renewal as "inactive". That notice will contain a section at the bottom whereby you can state, under the pains and penalties of perjury, that you have completed the 12-hour continuing education requirement and want to make your license "active". The notice will contain the Board’s mailing address so you can complete it and return it to the Board. You may use the notice if you make a mistake in your original license renewal application and inadvertently renew as "inactive" or if you actually renewed as "inactive" but subsequently completed the 12-hour continuing education requirement and wish to make your license "active". When the Board receives the notice your record will be updated to reflect that your real estate license is "active" and a new license will be mailed to you. Obviously there is no fee to do this since you will have paid for your license when you initially renewed it as "inactive".

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May I take correspondence courses either through the mail or the Internet to complete the Board’s continuing education requirement?

No you may not use correspondence courses via the mail or Internet to complete the 12-hour continuing education requirement. The Board does not approve courses. Rather it has established a 12-hour subject matter curriculum pursuant to the new continuing education statute. The Board approved schools (providers) agree to use that curriculum in covering the material in such curriculum for licensed real estate agents. At the current time there are no approved schools (providers) offering the curriculum via correspondence either through the mail or on the internet and the Board does not plan to address that issue at least until it completes one two year cycle of continuing education (meaning all real estate agents have been given the opportunity to complete the continuing education requirement which will occur by December 31, 2000).

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Does my continuing education in another state satisfy my requirement in Massachusetts?

If you obtained licensure as a salesperson or broker in Massachusetts without examination (usually referred to as reciprocity or reciprocal licensure) based upon your license in the other state and you complete the approved continuing education requirement of that other state (regardless of how many hours that state requires) then you have also satisfied the continuing education requirement in Massachusetts and will indicate as much, under the pains and penalties of perjury, on your Massachusetts license renewal application (questions 1 as 2 of the license renewal application). Obviously if you do not complete the other state’s approved continuing education requirement, if the other state has no such requirement or you did not obtain your Massachusetts license without examination based upon your licensure in the other state you would then have to complete the continuing education requirement in Massachusetts. (You must complete the approved continuing education requirement in the other state -even if you are exempt- in order for it to satisfy the Massachusetts requirement).

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If my real estate license expired more than one cycle ago (more than two years) can I still renew it and if so will I have to do more than 12 hours of continuing education?

By virtue of a change in the licensing law effective in March of 1999 you can now reinstate an expired real estate license which expired more than 24 months ago (If it has expired less than 24 months ago you would simply be renewing it late). Naturally you will have to pay the licensing fees you missed while the license was expired and a late fee. You must write to the Real Estate Board and request a "license reinstatement" application for your expired license. The request MUST include your name, address, social security number, date of birth and signature. The Board will send you the license reinstatement application, with any relevant materials, and calculate the correct fee so that you may reinstate your license.

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Does my continuing education count towards any continuing education that I must complete for another license I hold which was issued by Massachusetts or another state?

Whether or not your Massachusetts continuing education as a real estate agent can be used in part or totally in satisfaction of a continuing education requirement that you must fulfill for another type of license issued by Massachusetts or another state depends upon a determination which must be made by the licensing authority that issued your license in Massachusetts or another state. You should contact that licensing authority to determine whether they will accept all or part of the continuing education that you completed for your real estate agents license here in Massachusetts.

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What happens if I do not complete the 12 hour continuing education requirement when I renew my license?

Pursuant to the new law on continuing education the Board must renew your license as "inactive" (as opposed to "active"). "Inactive" means you cannot work as a real estate agent, though you may receive a referral fee from an "active broker" for those individuals you have referred to such broker who, in turn, ultimately sell or buy real property through such "active broker". If you wish to do more than just receive referral fees then you must complete the 12-hour continuing education requirement by the time you are scheduled to renew your license. It is important to also note that you must complete all 12 hours by the time you are scheduled to renew your license. Doing part or most of the 12 hours does not entitle you to an "active" license. You must complete all 12 hours.

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