MA License law and governance

MA Board of Registration of Real Estate Brokers and Salespersons

The 5-member state board that oversees licensing, enforces real estate laws, and regulates broker and salesperson conduct in Massachusetts.

Board Composition & Term Limits

5 members total: 3 licensed brokers (with at least 10 years experience) and 2 public non-licensed members. Appointed by the Governor for 5-year staggered terms.

Board Powers & Authority

Holds public hearings, investigates consumer complaints, issues/renews/revokes licenses, and establishes rules. Does NOT settle commission disputes between brokers or set commission rates.

Board Investigations & License Suspension

Has the power to conduct hearings and suspend or revoke licenses with a majority vote. Licenses must be surrendered immediately if revoked or suspended.

Salesperson License Requirements

Must be 18+, complete 40 hours of approved pre-licensing education, pass the state exam, and work under a licensed broker.

Broker License Requirements

Must complete 40 hours of approved broker education, pass the state broker exam, and actively work as a licensed salesperson under a broker for at least 3 consecutive years (at least 25 hours/week).

Broker Surety Bond

A mandatory $5,000 bond filed with the Board to protect the public (not the broker) against financial loss caused by broker mishandling of funds.

License Renewal Period

Licenses are renewed every 2 years on the licensee's birthday.

Continuing Education (CE) Requirement

12 hours of approved continuing education required every 2 years to maintain an active license. No exam required.

Inactive vs. Active Status

Active: Can practice and collect fees. Inactive: Paid license fee but didn't complete 12 CE hours; can still receive referral fees through a broker, but cannot directly practice real estate.

Blind Advertising

Prohibited practice where a licensee advertises real estate without explicitly including the name of their employing broker/brokerage.

M.G.L. Chapter 93A

Massachusetts Consumer Protection Act prohibiting unfair or deceptive acts or practices in the conduct of any trade or commerce.

Chapter 93A Real Estate Application

Applies to real estate licensees and businesses (commercial entities), but generally does NOT apply to private individual home sellers acting on their own.

Demand Letter Requirement (93A)

A consumer must send a written 30-day Demand Letter detailing the harm and damages suffered before filing a lawsuit under Chapter 93A.

Damages under Chapter 93A

Courts can award actual damages, or if the violation was willful or knowing, double or triple (treble) damages plus attorney fees and court costs.

Puffing vs. Chapter 93A Deception

Exaggerated opinions ("best view in town") are usually legal puffing, but misleading material facts or intentional/negligent misrepresentations violate Chapter 93A.

MA Mandatory Agency Disclosure Form

A form given at the first personal meeting to discuss a specific property. Discloses whom the licensee represents (seller, buyer, dual, or designated agent); it is a disclosure, not a contract.

Lead Paint Law (Property Built Pre-1978)

Federal & MA law requiring a Lead Paint Transfer Notification form for homes built before 1978. Buyers get a 10-day risk assessment period. MA law requires full deleading/encapsulation if a child under 6 resides there.

Seller's Property Disclosure (MA Practice)

MA does not legally mandate sellers to complete a written seller property disclosure, but licensees MUST disclose all known material facts affecting the property.

Known Physical/Material Defects

Licensees must affirmatively disclose known latent material defects (e.g., roof leaks, crumbling foundation, system defects) to potential buyers.

Stigmatized Property Law (MA)

Licensees are NOT required to disclose psychological impacts (murders, suicides, felonies, ghost sightings, HIV/AIDS diagnosis). Must answer truthfully if asked directly, except regarding HIV/AIDS (protected class).

Title V (Septic System) Disclosure

MA environmental regulation requiring septic systems to be inspected within 2 years prior to sale (or 3 years if pumped annually). Inspection results must be provided to the buyer.

Escrow Account Requirements

Brokers must maintain a separate interest-bearing or non-interest-bearing escrow account in a MA bank to hold client funds. Salespersons cannot hold escrow accounts.

Escrow Record Keeping

Brokers must retain complete escrow records (checks, bank statements, client ledgers) for at least 3 years.

Commingling

Illegal practice of mixing business or personal funds with client funds held in escrow.