Page | 1
MASSACHUSETTS REAL ESTATE
SALESPERSON LICENSE 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
RE Salesperson License requirements? - correct answer -18
years old, 40 hour class, pass the exam, must affiliate with a
broker to practice and may not accept direct client payments
Broker's License requirements? - correct answer -3 years
salesperson experience, 40 hour class, pass the exam, $5,000
bond and pay a fee.
What is MLS? - correct answer -Multiple Listing Service. It's a
marketing tool used by Salespeople to show their listings.
Difference between RE Salesperson and RE Broker? - correct
answer -Salesperson works for a Broker. Broker has at least 3
years experience, $5,000 Bond, 40 Hour Class and pass the
Exam. Cannot hold both licenses at the same time. Broker can
operate independently, accept direct client payments and handle
Escrow Funds.
, Page | 2
Define Realtor? - correct answer -It is National, not state and is
optional. NAR (National Assoc. of Realtors) Largest Trade Assoc.
and one of the most powerful lobbying groups in North America.
Pay a fee to join your local chapter (MAR).
Also, if a Broker is a Realtor, all Salespeople/Agents associated
with the office must be Realtors as well.
What is an Escrow Fund/Trust Accounts? - correct answer -1.
Special bank accounts for holding Client's deposits to be handled
by Broker only. 2. Brokers may have only one Escrow account.
3. Commingling is strictly forbidden.
4. No Salesperson Access.
5. Interest not mandatory but if yes the client must agree who gets
it in writing. (Statute of Fraud)
6. Brokers must maintain Escrow Records (copies of checks,
dates, transaction info) for 3 years which the RE Board may
inspect at any time.
7. Conversion of a deposit into commission requires written
permission from both parties. If not, can result in loss of license.
8. Court order needed to remove funds if there is a dispute.
, Page | 3
State Law -v- Federal Law? - correct answer -
Fed=US/State=Massachusetts State law builds on Fed law and is
more specific. In a conflict, Fed law usually wins.
Who needs a RE License? - correct answer -Anyone who does
any of the following for a fee: Advertises, holds herself out as
engaged in the biz of selling, renting, leasing, negotiation,
exchanging, purchasing and dealing in RE or options for RE.
Where do licenses come from? - correct answer -State
Legislature creates the laws about licenses. The Board of
Registration of RE & Salespersons deals with issuing licenses
and rule administration and enforcement. The Board is part of the
Division of Professional Licensure.
Why do we have licenses? - correct answer -To protect the public,
for the public good. Much of the Government's ability to regulate
private transactions stems from Police Power which is the right of
the Gov to enact laws to protect the public.
Who makes up the Board of Registration of RE & Salespersons? -
correct answer -- 5 Member Board est. in 1960
- Appointed by the Governor
, Page | 4
- One is appointed Chairperson
- 3 are Brokers with at least 7 years experience
- 2 are not licensed, represent the public
- 5 year terms, no pay
- Meet 4 times a year with at least 3 of the Members present.
Written records of meetings are available to the public on Division
of Pro Licensure's website
1099 -v- W2 Employee? - correct answer -1099=Independent
Contractor, paid by job or commission, set own hours, can turn
down work, etc, no taxes withheld, but may take many write-offs
(Many Residential RE Agents)
W2=Salaried of paid hourly, employer controls what and how you
do (Commercial RE Agents), taxes withheld by employers
What is FSBO? - correct answer -For Sale by Owner
Types of RE Advertising? - correct answer -MLS, Open House,
Trulia, Zillow, Neighbors, etc.
MASSACHUSETTS REAL ESTATE
SALESPERSON LICENSE 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
RE Salesperson License requirements? - correct answer -18
years old, 40 hour class, pass the exam, must affiliate with a
broker to practice and may not accept direct client payments
Broker's License requirements? - correct answer -3 years
salesperson experience, 40 hour class, pass the exam, $5,000
bond and pay a fee.
What is MLS? - correct answer -Multiple Listing Service. It's a
marketing tool used by Salespeople to show their listings.
Difference between RE Salesperson and RE Broker? - correct
answer -Salesperson works for a Broker. Broker has at least 3
years experience, $5,000 Bond, 40 Hour Class and pass the
Exam. Cannot hold both licenses at the same time. Broker can
operate independently, accept direct client payments and handle
Escrow Funds.
, Page | 2
Define Realtor? - correct answer -It is National, not state and is
optional. NAR (National Assoc. of Realtors) Largest Trade Assoc.
and one of the most powerful lobbying groups in North America.
Pay a fee to join your local chapter (MAR).
Also, if a Broker is a Realtor, all Salespeople/Agents associated
with the office must be Realtors as well.
What is an Escrow Fund/Trust Accounts? - correct answer -1.
Special bank accounts for holding Client's deposits to be handled
by Broker only. 2. Brokers may have only one Escrow account.
3. Commingling is strictly forbidden.
4. No Salesperson Access.
5. Interest not mandatory but if yes the client must agree who gets
it in writing. (Statute of Fraud)
6. Brokers must maintain Escrow Records (copies of checks,
dates, transaction info) for 3 years which the RE Board may
inspect at any time.
7. Conversion of a deposit into commission requires written
permission from both parties. If not, can result in loss of license.
8. Court order needed to remove funds if there is a dispute.
, Page | 3
State Law -v- Federal Law? - correct answer -
Fed=US/State=Massachusetts State law builds on Fed law and is
more specific. In a conflict, Fed law usually wins.
Who needs a RE License? - correct answer -Anyone who does
any of the following for a fee: Advertises, holds herself out as
engaged in the biz of selling, renting, leasing, negotiation,
exchanging, purchasing and dealing in RE or options for RE.
Where do licenses come from? - correct answer -State
Legislature creates the laws about licenses. The Board of
Registration of RE & Salespersons deals with issuing licenses
and rule administration and enforcement. The Board is part of the
Division of Professional Licensure.
Why do we have licenses? - correct answer -To protect the public,
for the public good. Much of the Government's ability to regulate
private transactions stems from Police Power which is the right of
the Gov to enact laws to protect the public.
Who makes up the Board of Registration of RE & Salespersons? -
correct answer -- 5 Member Board est. in 1960
- Appointed by the Governor
, Page | 4
- One is appointed Chairperson
- 3 are Brokers with at least 7 years experience
- 2 are not licensed, represent the public
- 5 year terms, no pay
- Meet 4 times a year with at least 3 of the Members present.
Written records of meetings are available to the public on Division
of Pro Licensure's website
1099 -v- W2 Employee? - correct answer -1099=Independent
Contractor, paid by job or commission, set own hours, can turn
down work, etc, no taxes withheld, but may take many write-offs
(Many Residential RE Agents)
W2=Salaried of paid hourly, employer controls what and how you
do (Commercial RE Agents), taxes withheld by employers
What is FSBO? - correct answer -For Sale by Owner
Types of RE Advertising? - correct answer -MLS, Open House,
Trulia, Zillow, Neighbors, etc.
