Real Estate Exam Flashcards

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.