real estate license laws ► chapter 10 © 2009 south-western, cengage learning
TRANSCRIPT
© 2009 South-Western, Cengage Learning
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
© 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
© 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
© 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
© 2009 South-Western, Cengage Learning
1 year, temporary license
no examination
$5,000 surety bond required
© 2009 South-Western, Cengage Learning
• notification to Board of affiliation
• sharing of fees
• attorney services
• dual agency
• subagency
• facilitation
© 2009 South-Western, Cengage Learning
escrow account
record keeping
salesperson or employed broker cannot hold funds
© 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
© 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)
© 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
© 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)
© 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)
© 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,
Fraction
al
Ownersh
ip
© 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
© 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
© 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
© 2009 South-Western, Cengage Learning
• License prominently displayed
• Prompt notification to the Board ofnew/additional location
© 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
© 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)