MA Salesperson Exam Module 1 The Basics Exam

Why do we have licenses? - Correct Ans--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. - required to represent someone in a real estate transaction and expect to get paid Who needs a license? - Correct Ans-Any person or entity who for compensation or valuable consideration, offers, sells, or leases for others Who governs licenses? - Correct Ans-- The board of registration of real estate brokers and salespersons, A part of the division of professional licensure The Board - Correct Ans--five members; three are brokers who have seven years experience, to our regular people that represent the public - 1 chair - members server a term of five years unpaid meet about 3 to 4 times a year Salesperson - Correct Ans--works under broker, cannot take direct client payments or handle any client money -must be 18 years old, take 40 hour course, pass exam, and pay a fee Broker - Correct Ans--Can handle client money, can handle escrow funds -must have at least three years of experience in 25 hours a week -take additional 40 hour course, take additional exam, be bonded for $5000, and Pay fee -can take listings and operate independently - bonds expire every five years and you must get a new one even if you do not cash it Associate Broker - Correct Ans--has brokers license but continues to work under an employing broker -cannot handle client money and listings -still must be bonded for $5000 REALtor and the NAR - Correct Ans--membership, not license -must come in annual fee and pledge to the code of ethics that goes beyond state and federal laws If you join a brokerage that is affiliated with the realtor association, you must join the realtor association Prior to listing - Correct Ans--sellers consultation, listing agreement - prep listing: staging, renovation, photos Listing the property - Correct Ans--via MLS - listings to go on in the last 24 hours after the listing agreement is signed Advertise - Correct Ans-Social media, mailers, emails, open houses, showings, etc. Qualify and show - Correct Ans-- find a buyer (direct or buyers agent) -do NOT violate fair housing laws Offer - Correct Ans-- offer deposit - home inspection (not required in MA) Purchase and Sale - Correct Ans-- P&S deposit (5% of purchase price) - real estate contract (closing date, responsibility of buyer and seller) - title search, appraisal if financing, Title V, 6D Cert -smoke inspection certificate -Contingency: Under agreement, accepted offer, but still waiting on some thing (if the buyer backs out at this point for any reason outside the co