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

3.  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

4. © 2009 South-Western, Cengage Learning  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

5. © 2009 South-Western, Cengage Learning  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

6. © 2009 South-Western, Cengage Learning  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

7. © 2009 South-Western, Cengage Learning broker’s license only assignment of broker’s license

8. © 2009 South-Western, Cengage Learning  1 year, temporary license  no examination  $5,000 surety bond required

9. © 2009 South-Western, Cengage Learning

10. notification to Board of affiliation sharing of fees attorney services dual agency subagency facilitation

11. © 2009 South-Western, Cengage Learning

12.  escrow account  record keeping  salesperson or employed broker cannot hold funds

13. © 2009 South-Western, Cengage Learning  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

14. © 2009 South-Western, Cengage Learning ✖ 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)

15. © 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

16. © 2009 South-Western, Cengage Learning ✖ 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)

17. © 2009 South-Western, Cengage Learning ✖ 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)

18. © 2009 South-Western, Cengage Learning 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, Fractional Ownershi p

19. © 2009 South-Western, Cengage Learning 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

20. © 2009 South-Western, Cengage Learning ☒ 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

21. © 2009 South-Western, Cengage Learning reciprocal licensee - C/E in any state where licensed (if Massachusetts license obtained without examination) examination in Massachusetts requires C/E in MA

22. © 2009 South-Western, Cengage Learning License prominently displayed Prompt notification to the Board of new/additional location XYZ Real Estate License

23. © 2009 South-Western, Cengage Learning 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

24. © 2009 South-Western, Cengage Learning 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)

25. KEY TERMS © 2009 South-Western, Cengage Learning apartment rentals Board of Registration continuing education escrow account inactive status reciprocal license rental fee disclosure