Massachusetts Real Estate Broker Exam — All Questions

Massachusetts requires licensees to present consumers with a form disclosing the type of representation offered. This form is the:

• a.Consumer Information Statement
• b.Working With Real Estate Agents brochure
• c.Notice of Escrow Rights
• d.Massachusetts Mandatory Licensee-Consumer Relationship Disclosure✓

Massachusetts licensees must present the Mandatory Licensee-Consumer Relationship Disclosure at the first personal meeting to discuss a specific property. It explains whether the licensee acts as a seller's agent, buyer's agent, designated agent, facilitator, or dual agent. Presenting the disclosure documents the consumer's understanding of the relationship; it does not by itself create agency.

Under Massachusetts designated agency, when one firm has clients on both sides of a sale, the broker may:

• a.Refuse to disclose that any representation exists
• b.Appoint different agents in the firm to represent the buyer and the seller individually✓
• c.Represent only the party who pays the higher commission
• d.Ignore consent because the firm is neutral

Massachusetts recognizes designated agency, in which the broker appoints separate agents within the firm to represent the buyer and the seller as their individual designated agents, keeping each party's confidential information protected. Where the same agent would represent both parties, that is dual agency and requires the written consent of both. The relationship must be disclosed on the mandatory relationship disclosure.

A Massachusetts licensee who assists both parties in a transaction without representing either as an agent is acting as a:

• a.Subagent
• b.Dual agent
• c.Facilitator✓
• d.Designated seller's agent

Massachusetts recognizes the facilitator (non-agent) role, in which the licensee helps the parties complete a transaction without owing fiduciary duties of loyalty or advocacy to either. A facilitator still owes honesty, fair dealing, and disclosure of known material defects. The chosen relationship must be identified on the Mandatory Licensee-Consumer Relationship Disclosure.