Real Estate Exam Flashcards

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Questions and Answers

What does The Board a.k.a the Division of Professional Licensure (DPL) consist of?

Two unlicensed persons, three brokers of seven plus years' experience, one is a chairperson.

In order to reinstate your real estate license, you should...

Send a written request to the board and you will likely have to take a course as well.

How is The Board created?

Appointed by governor.

What does The Board do?

Reinstates the licenses, enforce law, issue license, suspension and revocation. Signup and view all the answers

In order to obtain a Broker's license...

You must have 3 years experience as a salesperson, work 25 hours/week, take a 40 hour course, be bonded for $5,000. Signup and view all the answers

What is the main difference between a Broker and Salesperson?

Brokers will handle client money (escrow account). Only brokers can work independently while salespeople must work for a broker. Signup and view all the answers

Benefits of joining REALTORS...

Discounts for MLS, discounts on insurance, rental cars, and networking. Signup and view all the answers

Who is a buyer's agent?

Someone representing a buyer. Signup and view all the answers

Who is a seller's (listing) agent?

Someone representing a seller. Signup and view all the answers

What happens during a seller consultation?

Listing agreement, sit down with seller, ask them questions about what they need from the sale, timeline, price, marketing, what they want the sale to look like. Signup and view all the answers

What does 'prep the listing' refer to?

Staging, decluttering, renovation, photography/videography. Signup and view all the answers

Who pays for what when the listing is being prepped?

Seller pays for decluttering, renovation. Agent pays for staging, photography, videography (unless brokerage does). Signup and view all the answers

What is MLS (Multiple Listing Service)?

Database of listings that are available in Massachusetts. Signup and view all the answers

Once an agreement is signed, how long before the listing must go on MLS?

24 hours. Signup and view all the answers

How do listings end up on other real estate websites?

MLS syndicates (sends out) to other websites. Signup and view all the answers

Who usually pays for advertisements?

The agent or brokerage. Signup and view all the answers

Questions to ask buyers/buyer's agents...

Are you pre-approved? What's your timeframe? When are you available to see the property? How is the client going to pay for the property? Signup and view all the answers

Which questions not to ask buyers?

Marital status, kids, etc. Keep the questions to the property and the qualifications to buy. Signup and view all the answers

What is the Due Diligence timeframe?

1 - 2 weeks. Signup and view all the answers

What does P & S stand for?

Purchase and Sale agreement. Signup and view all the answers

What does CTG stand for?

Under contract. Signup and view all the answers

What does the title search look for?

Ownership, certain types of ownerships. Signup and view all the answers

What does a 6D Certificate verify?

Verifies that the condo fees or special assessments have been paid up to date by the seller. Signup and view all the answers

What happens during a closing?

The sale goes on record, the brokerage gets paid money, and the brokerage pays salesperson. Signup and view all the answers

What are the three parties involved in a real estate transaction?

Principal, Special Agent, and Subagent. Signup and view all the answers

Who is the Principal?

A person who hires an agent to represent them. This can be a seller, buyer, landlord, broker, or tenant. Signup and view all the answers

Who is the Special Agent?

An agent who is hired to help a principal with a specific transaction. Signup and view all the answers

Who is the Subagent?

An agent that works on behalf of another agent. Signup and view all the answers

Who pays the Salesperson?

The brokerage. Signup and view all the answers

Who is responsible for the Salesperson's mistakes?

The brokerage. Signup and view all the answers

What does a 1099 Independent Contractor title mean?

That someone is self-employed. They have their own schedule, can turn down work, use their own methods. Signup and view all the answers

Study Notes

The Board of Professional Licensure (DPL)

Consists of two unlicensed individuals, three licensed brokers with over seven years of experience, and one chairperson.
Appointed by the governor to ensure fairness and non-bias, maintaining checks and balances.
Board members serve unpaid, meet at least four times a year, and decisions require at least three members present.

Licensing and Reinstatement

To reinstate a real estate license, submit a written request to the board; additional coursework may be required.
Obtaining a Broker's license mandates three years of experience as a salesperson, at least 25 hours of work per week, completion of a 40-hour course, and a $5,000 bond.

Roles of Brokers and Salespersons

Brokers can handle client money (escrow accounts) and work independently, while salespeople must operate under a broker's supervision.
Joining REALTORs offers benefits like MLS discounts, insurance savings, rental car discounts, and networking opportunities.

Agent Roles

A buyer's agent represents the interests of the buyer.
A seller's agent (listing agent) focuses on the seller's needs.

Seller Consultations and Listings

A seller consultation includes discussing the listing agreement, understanding the seller’s goals, timeline, price expectations, and marketing strategies.
"Prep the listing" involves staging, decluttering, renovating, and photography or videography.

Listing Costs

Sellers are responsible for decluttering and renovation costs, while agents typically cover staging, photography, and videography (unless the brokerage absorbs these costs).
The MLS (Multiple Listing Service) serves as a database for available listings in Massachusetts, with listings required to be posted within 24 hours after an agreement is signed.

Advertising and Buyer Interactions

Agent or brokerage typically pays for property advertisements.
Key questions for buyers include pre-approval status, timeline, availability to view properties, and payment methods, while avoiding inquiries about marital status or children.

Due Diligence and Contracts

The due diligence period lasts 1 to 2 weeks.
P & S stands for Purchase and Sale agreement, while CTG means under contract—indicating acceptance of an offer pending further requirements before signing.

Title and Closing

Title search confirms ownership types and records.
A 6D Certificate ensures all condo fees or special assessments are current, while closing finalizes the sale, records it, and manages broker and salesperson payments.

Transactional Parties

Real estate transactions involve three parties: Principal, Special Agent, and Subagent.
The Principal employs an agent for representation; this can include sellers, buyers, landlords, brokers, or tenants.
A Special Agent is dedicated to assisting the Principal for a specific transaction, while a Subagent represents another agent's interests.

Responsibilities and Contracts

Salespeople are compensated by the brokerage, which is also liable for their mistakes.
A 1099 Independent Contractor title indicates self-employment, allowing flexibility in scheduling, work acceptance, and method use.

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Test your knowledge with these flashcards covering key concepts related to the Board of Professional Licensure in real estate. Prepare effectively for your real estate exam by reviewing important definitions and processes for maintaining licensure.