Free Massachusetts Real Estate Salesperson Practice Exam 2025

Massachusetts law requires that brokers retain records of rental fees and related documents for at least 3 years. This allows for proper oversight and accountability.

Under Massachusetts Fair Housing Law, complaints must be filed with the Massachusetts Commission Against Discrimination (MCAD) within 90 days of the alleged violation.

A ministerial act is a task that does not require discretion or judgment. Showing property without providing advice or representation is considered ministerial and does not create an agency relationship.

LTV = Loan ÷ Purchase Price → 200,000 ÷ 250,000 = 0.80 or 80%.

Net listings are illegal in Massachusetts. A net listing allows the agent to keep any amount above a certain price, creating a conflict of interest. The law prohibits this practice to protect sellers.

If a broker’s license is suspended, the licenses of all affiliated salespersons are automatically placed on inactive status, as they cannot operate without a sponsoring broker.

To renew their license every two years, Massachusetts licensees must complete 12 hours of continuing education in approved topics. No retesting or appearance before the Board is required unless under disciplinary review.

Commingling—mixing client funds with personal or business accounts—is a serious violation of real estate law and may result in suspension or revocation of a license.

Steering clients based on race violates the federal Fair Housing Act.

Massachusetts requires brokers to retain copies of contracts and escrow records for a minimum of three years. This retention ensures the records are available for audits or legal inquiries.

Salespersons in Massachusetts may only receive compensation through their employing broker. They cannot be paid directly by buyers, sellers, or other parties to the transaction.

Commingling occurs when a broker improperly mixes client funds (such as escrow deposits) with their own funds. This is illegal and can result in disciplinary action.

Licensees must disclose in writing that they are licensed when participating in a real estate transaction on their own behalf, to avoid potential conflicts of interest or deception.

It is a violation of Massachusetts real estate law for a broker to advertise a property without the owner's written consent. This is grounds for disciplinary action, including suspension or revocation of the license.

Massachusetts law requires brokers to maintain a separate escrow account for client funds. Commingling client funds with personal or business funds is strictly prohibited. Only brokers (not salespersons) may manage escrow accounts.

A $5,000 surety bond is required for all broker applicants in Massachusetts. This bond protects the public in case of broker misconduct or misuse of client funds.

To be eligible for a broker’s license, a Massachusetts salesperson must have been licensed and affiliated with a broker for at least 3 years, working at least 25 hours per week.

Just like the salesperson license, an applicant for a broker license in Massachusetts must be at least 18 years old, have worked as a salesperson for at least 3 years, and meet all educational and bonding requirements.

Licenses for real estate professionals in Massachusetts are issued and regulated by the Board of Registration of Real Estate Brokers and Salespersons, which is part of the Division of Occupational Licensure.

Massachusetts law mandates that the agency disclosure form be presented at the first personal meeting to discuss a specific property with a consumer. This helps ensure transparency about agency roles and responsibilities early in the relationship.

A $5,000 surety bond is required of Massachusetts brokers to ensure that the public has recourse in the event the broker commits fraud or misappropriates client funds.

In Massachusetts, brokers—not salespersons—are authorized to hold escrow funds in a trust account. Salespersons must turn over such funds to their employing broker promptly.

Massachusetts law mandates that the agency disclosure form be provided at the first personal meeting to discuss a specific property, ensuring transparency in representation and agency relationships.

Real estate licensees must have a written contract, such as a listing agreement or buyer representation agreement, signed by the party from whom compensation is sought, to legally receive payment for services rendered.

Practicing real estate without a license in Massachusetts can result in a fine of up to $1,000 per violation. This penalty underscores the importance of proper licensure to protect the public and uphold professional standards.

If a licensee fails to renew on time, their license becomes inactive. They may not practice until it is reactivated, but they do not lose the license permanently unless further violations occur.

A real estate license is required in Massachusetts when someone is engaged in the business of selling or renting property on behalf of others for compensation.

Massachusetts requires salesperson candidates to complete 40 hours of approved pre-licensing education before they are eligible to take the licensing exam.

Massachusetts law specifies that candidates must be at least 18 years old to apply for a real estate salesperson or broker license.

State regulations require brokers to keep records of rental transactions, including contracts and deposit receipts, for at least three years. This provides protection in case of disputes or audits.

Massachusetts requires licensees to complete continuing education every two years in order to renew their real estate license. This ensures ongoing compliance and professional development.

Massachusetts mandates continuing education every two years as part of the license renewal cycle to ensure ongoing professional competency.

The Board consists of five members: three licensed real estate brokers with at least 7 years of experience, and two unlicensed public members. This composition ensures both industry knowledge and public representation.

Massachusetts requires all real estate licensees to complete 12 hours of approved continuing education before renewing their license. This is necessary to keep practitioners up to date with laws and best practices.

FHA doesn't lend money; it insures the loan, allowing lenders to offer more favorable terms.

After a tax sale in Massachusetts, property owners have a redemption period of 6 months to reclaim their property by paying off the tax debt and additional costs.

Massachusetts real estate agents are legally obligated to present all written offers to their clients promptly, regardless of source, unless instructed otherwise in writing. This includes offers from other licensees.

Massachusetts law requires that a mortgage holder record a discharge within 30 days after full repayment. Failure to do so can result in financial penalties and complications in the property’s title.

Once a broker secures a buyer who meets the terms of the listing agreement (ready, willing, and able), the broker has earned their commission. The seller’s refusal to proceed with the sale does not negate the broker’s right to payment.

Net = Price × (1 - Commission). So, 180,000 = Price × 0.94 → Price = 180,000 / 0.94 = $191,489. Correct rounded to B.