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MA RE Salesperson · Cheat Sheet

License Law & Board

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LICENSE LAW & BOARD — CHEAT SHEET

SALESPERSON LICENSE REQUIREMENTS

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EXAM PORTIONS

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Reciprocal States: CT, RI, WV, NE, IA, TN, MS, GA, CO + others (verify with Board — agreements change)

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LICENSE RENEWAL & EXPIRATION

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Mandatory CE Topics: Fair housing law, agency law, Board-designated subjects

⚠️ Practicing on expired license = unlicensed activity = civil/criminal penalties + forfeit commissions

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BROKER LICENSE UPGRADE

From Salesperson to Broker:

  • Active MA salesperson license
  • 3 years active full-time experience
  • 40 hours broker education
  • Pass broker exam (covers management, trust accounts, supervision, contracts)

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BOARD STRUCTURE & AUTHORITY

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DISCIPLINARY GROUNDS & SANCTIONS

Grounds for Discipline:

  • Fraud, misrepresentation, incompetence
  • Commingling (client $ + broker's personal $)
  • Undisclosed dual agency
  • Failure to disclose material facts
  • Criminal conviction (moral turpitude)

Sanctions (Ascending):

  • Formal reprimand
  • License suspension
  • License revocation (requires formal hearing; appealable to Superior Court)

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    BROKER SUPERVISION RULES

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    RequirementDetail
    Age≥18 years old
    Education40 hours pre-licensure (Board-approved school)
    ExamPass national + state portions (PSI Services)
    Broker AffiliationMust be sponsored by licensed MA broker
    ExperienceNone required
    Background CheckCORI/SORI required; criminal history reviewed case-by-case
    PortionContentReciprocity?
    NationalGeneral RE principlesMay be waived (reciprocal states only)
    StateMA law & practiceAlways required
    TimelineCE RequiredAction
    Every 2 years12 hoursRenew on schedule
    0–90 days late12 hours + penalty feeLate renewal allowed (grace period)
    >90 days late—Retake exam & reapply (new licensee)
    ComponentDetail
    Statutory AuthorityM.G.L. Chapter 112, §87PP–§87DDD
    Regulations254 CMR
    Composition7 members: 5 brokers + 2 public; 3-year staggered terms
    Appointed ByGovernor
    Parent AgencyDivision of Professional Licensure (DPL)
    RuleApplication
    Salesperson must work under brokerNo independent agent status without broker license
    Broker liabilityBroker liable for salesperson's acts in scope of employment
    Compensation flowAll commissions/fees → Licensed broker only (then to salesperson)
    Direct payment❌ Illegal for salesperson to accept direct fees from buyer/seller/tenant/landlord
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    WHO NEEDS A LICENSE?

    License Required If:

    • For compensation: sells, exchanges, purchases, rents, leases, negotiates, lists real estate

    Exempt:

    • Attorneys (professional capacity)
    • Court-appointed receivers/trustees
    • Government employees (official capacity)
    • Owners selling own property (unless in brokerage business)
    • Key: No compensation = no license needed

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    QUICK DECISION TREES

    Expired License? `` Licensed today? ├─ Yes → Renew normally (12 CE, no penalty) ├─ Expired <90 days → Late renewal (12 CE + penalty fee) └─ Expired >90 days → Retake exam & reapply `

    Broker License Ready? ` Active salesperson? + 3 years full-time? + 40 broker hours? ├─ All YES → Take broker exam └─ Missing any → Not eligible ``

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    HIGH-YIELD FACTS

    ✓ 40 hours pre-licensure; 12 hours renewal (every 2 years) ✓ 3 years = broker experience threshold ✓ Broker responsible for all salesperson acts in scope ✓ State portion always required; national may be waived (reciprocity) ✓ Commingling = major discipline violation ✓ Expired license + practice = civil + criminal liability

    Aligned to the Massachusetts salesperson exam outline.

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    Sections in this topic

    License RequirementsBoard StructureSupervisionRenewal CeEthics