Real Estate Massachusetts-Real-Estate-Salesperson - Massachusetts Real Estate Salesperson Exam

The Massachusetts Fair Housing Law (M.G.L. c. 151B) prohibits discrimination in housing based on race, color, religion, sex, sexual orientation, gender identity, national origin, age, ancestry, veteran status, familial status, disability, or receipt of public assistance. Asking about a tenant’s place of birth could reveal information about national origin or ancestry, which are protected classes under both state and federal fair housing law.

By contrast, landlords and brokers are legally permitted to verify income and occupation to determine financial qualifications, and Massachusetts law also permits certain criminal history checks in compliance with state and federal guidelines. However, questioning applicants about their place of birth is directly discriminatory and unlawful.

The Massachusetts State Sanitary Code (105 CMR 410) establishes minimum standards for human habitation. Landlords are required to ensure that rental units are kept in a safe, sanitary, and habitable condition at all times. This includes maintaining heating systems, hot water, structural integrity, pest control, and ensuring compliance with health and safety standards.

While landlords may provide a statement of condition when collecting a security deposit (per M.G.L. c. 186, § 15B), this is not part of the Sanitary Code itself. Similarly, no law requires inspections every six months or a 24-hour notice of entry (although reasonable notice is considered best practice and is recommended in case law).

The essential legal requirement is habitability. Tenants have the right to withhold rent or seek remedies if the landlord fails to maintain the property in compliance with the Sanitary Code. Local boards of health enforce these regulations.

 

C is correct. Massachusetts requires sellers and real-estate agents involved in sales of qualifying pre-1978 residential properties to provide prospective purchasers with the Property Transfer Lead Paint Notification before execution of the purchase-and-sale agreement. Known lead information and applicable reports must also be disclosed.

The seller is not automatically required to delead the property merely as a condition of selling it. The prospective purchaser also has an opportunity—generally ten days unless modified by agreement—to conduct a lead inspection but is not automatically required to perform one.

Where a child under six will live in the pre-1978 home, the new owner has substantive Massachusetts Lead Law obligations. Current Massachusetts guidance states that the property must be made lead safe through deleading or interim control as legally required, generally within 90 days of taking title in the circumstance described.

Study Guide Reference: Massachusetts Lead Law — Property Transfer Lead Paint Notification and purchaser inspection rights.

Under Massachusetts real estate license law, a broker must disclose any personal interest, or the interest of an immediate family member, in a transaction to all parties. This is a matter of fiduciary duty and is explicitly required under 254 CMR 3.00.

Failing to disclose that the seller is the broker’s cousin constitutes a conflict of interest and violates the duty of loyalty, disclosure, and honesty to the client (the buyer). While it is not illegal to buy or sell property involving relatives, the relationship must always be made known to avoid misrepresentation or concealment of material facts.

Therefore, the broker is in violation because the familial relationship was not disclosed.

Under the Massachusetts Lead Law (M.G.L. c. 111, §§ 189A–199B), the presence of lead paint in any residential property built before 1978 where children under six will be residing requires that the property be either deleaded or brought into interim control (made lead-safe). The law does not exempt short-term leases, and the landlord must comply regardless of the lease term (even for a six-month rental).

Since the tenant has children ages four, six, and nine, the landlord must take appropriate action to either de-lead or make the property lead-safe. The tenant’s lack of concern does not exempt the owner from the obligation to comply with the law.

 

B, a real-estate listing agreement, is correct. Massachusetts Board contract curriculum specifically provides that listing contracts may be written or oral, although sound professional practice strongly favors written agreements.

The Massachusetts Statute of Frauds generally requires a sufficient signed writing for contracts for the purchase or sale of real property to be enforceable against the party to be charged. Agreements that cannot be performed within one year also generally fall within the Statute of Frauds, which makes a twenty-year oral lease an inappropriate answer.

An oral listing agreement should not be confused with an oral contract transferring ownership of real estate. A listing agreement is fundamentally an employment relationship between broker and client rather than the conveyance itself.

Written listings are preferable because they establish price, duration, scope of authority, brokerage relationship, compensation, and termination provisions and significantly reduce evidentiary disputes.

Study Guide Reference: Contracts — Listing Agreements and Massachusetts Statute of Frauds.

Under Massachusetts law (specifically M.G.L. c. 183A), tenants in properties being converted to condominiums are given the right of first refusal to purchase the unit they occupy. The offer must be made at terms that are equal to or better than those offered to the general public.

This ensures that tenants have the opportunity to buy their units at the same price or better terms than any outside buyers. This protection allows tenants the chance to remain in their homes as owners, rather than being displaced.

The law does not stipulate that the unit must be offered at a discount (such as 20% or 15% off); rather, the terms must be equal or more favorable than those available to others.

Under M.G.L. c. 112, § 87DDD½, Massachusetts law requires real estate brokers and salespersons engaged in renting residential property to provide prospective tenants with a written notice stating the amount of any broker’s fee, and whether the tenant will be responsible for paying it. This disclosure must be made before the tenant is obligated to pay any fee.

This law protects tenants from unexpected costs and ensures transparency in rental transactions. While rental amount, landlord details, and public information such as the state’s sex offender registry may be relevant, the statutory requirement specifically addresses broker compensation. Failure to provide this written notice may result in disciplinary action by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons.

A facilitator is a neutral party who assists both the buyer and the seller in a real estate transaction but does not have the agency responsibilities of an agent. Facilitators do not represent either party (seller or buyer) and do not owe fiduciary duties to either. The role of a facilitator is limited to helping both parties complete the transaction by providing guidance on the process, preparing documents, and ensuring that all procedural steps are followed.

Unlike agents, facilitators are not required to disclose confidential information or negotiate on behalf of either party. Their primary function is to assist with the logistics of the transaction without representing one party’s interests over the other.

 

The correct answer is C. Massachusetts Board guidance interprets 254 CMR 3.10 as allowing brokers—not salespersons or unlicensed employees—to maintain and exercise authority over brokerage escrow accounts.

The Board recognizes that modern firms may have several affiliated brokers, so it permits appropriately affiliated brokers within the brokerage to serve as account signato ries. What it does not permit is handing escrow-account control to an affiliated salesperson, accountant, bookkeeper, or unlicensed employee.

This allocation of authority reflects the broker ' s regulatory responsibility for safeguarding funds belonging to consumers. Earnest-money deposits and other transaction funds must remain segregated from business funds and properly accounted for.

A salesperson may receive a deposit during a transaction but must transmit it to the employing broker according to applicable procedures rather than assuming independent control of the escrow account.

Study Guide Reference: Massachusetts License Law — Escrow Accounts and Broker Responsibility.