Massachusetts Licensing Requirements
Area II is 10% of the state portion, four items: activities requiring a license, types of license, renewal and continuing education, and Board notifications.
Who needs a license
M.G.L. c.112 s.87PP defines a broker as anyone who, for another and for consideration, sells, exchanges, purchases, rents, leases, lists, or negotiates real estate, or assists in procuring prospects. A salesperson does everything in that definition except complete the negotiation. Section 87DDD1/2 adds that no person may engage in the business of finding dwelling accommodations for prospective tenants for a fee unless licensed, which is why apartment-finding services are inside the license law.
Becoming a broker
A broker candidate must be at least 18, hold a current Massachusetts salesperson license, and show three years affiliated with an active Massachusetts broker as an active salesperson at a minimum of 25 hours per calendar week (254 CMR 2.00(6)), experience no more than two years old at the examination. M.G.L. c.112 s.87SS requires 40 classroom hours of Board-approved broker courses; the same section exempts a Massachusetts attorney from the examination. Section 87TT requires a $5,000 surety bond conditioned on the broker's faithful accounting for all funds entrusted to him, and the Board may revoke a broker's license if the bond lapses.
Active, inactive, expired
A license runs two years and is renewed biennially without examination, expiring on the licensee's birthday. Continuing education must be completed before renewing as active; the current requirement in bulletin 4460 is 12 hours. A licensee who cannot certify it is renewed on inactive status under s.87XX1/2 and may not practice, though he may still assist with or direct the procuring of prospects and take referral fees, and may reactivate on completing the education for the immediately preceding renewal period.
Telling the Board
A salesperson must promptly give the Board written notice of any change of business address (s.87VV) and a broker written notice of any change of business location (s.87YY); failure is a ground for revocation. A resident broker must maintain a usual place of business in the Commonwealth and display the license conspicuously there.
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State-specific details
State exam facts
- Exam vendor
- PSI
- Prelicensing education
- 40 additional broker education hours (beyond the 40-hour salesperson course)
- Passing score
- 70%
- Scored questions
- 120
Who regulates real estate brokers in Massachusetts?
The Massachusetts Board of Registration of Real Estate Brokers and Salespersons, within the Division of Occupational Licensure, licenses brokers. The Board contracts with PSI to deliver the licensing exams.
What experience do I need before the Massachusetts broker exam?
Broker applicants generally must have worked as an affiliated salesperson under an active Massachusetts broker for at least three years (a minimum of about 25 hours per week) and complete an additional 40 hours of broker education. Confirm the current requirement with the Board.
How is the Massachusetts broker exam structured?
The Massachusetts broker exam has about 120 questions split into a general portion and a state portion, delivered by PSI, and a score of at least 70% is required to pass.
Sources: https://www.mass.gov/how-to/prepare-for-and-schedule-your-real-estate-license-exam, https://www.psiexams.com/test-takers/massachusetts-real-estate/
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