Massachusetts Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

A life estate gives the holder the right to use property for the duration of a person's life. When that life estate ends, the property passes to the person designated to receive it, who is called the:

• a.Grantor's creditor
• b.Trustee
• c.Remainderman✓
• d.Lessee

When a life estate ends, title passes to the remainderman if a third party is named, or reverts to the grantor (a reversion) if none is named. A life tenant may use the property but cannot leave it by will.

Which of the following is a private, rather than governmental, control on land use?

• a.Eminent domain
• b.Building code
• c.Restrictive covenant in a subdivision✓
• d.Zoning ordinance

A restrictive covenant is a private limitation placed by a developer or prior owner and enforced among property owners. Zoning ordinances, building codes, and eminent domain are governmental (public) controls exercised through police power or condemnation.

Two adjacent lots differ in value mainly because one is much larger. When adjusting comparables, this reflects the appraisal principle of:

• a.Anticipation
• b.Escheat
• c.Novation
• d.Contribution✓

The principle of contribution states that the value of a component (such as extra lot size or an added feature) is measured by how much it adds to the whole property's value, not by its cost. Appraisers use it when adjusting comparable sales.

An appraiser is asked for the value of a unique historic library building with no comparable sales and no rental income. The most appropriate approach is usually the:

• a.Cost approach✓
• b.Gross rent multiplier
• c.Sales comparison approach
• d.Income approach

For special-purpose properties with few or no comparable sales and no income stream, the cost approach (land value plus depreciated replacement cost) is generally the most reliable. The income and sales comparison approaches lack the data such a property provides.

A clause in a mortgage that requires the loan to be paid in full if the property is sold or transferred is the:

• a.Defeasance clause
• b.Alienation (due-on-sale) clause✓
• c.Subordination clause
• d.Habendum clause

The alienation or due-on-sale clause lets the lender require full repayment when the borrower transfers the property, preventing a buyer from simply assuming the loan without approval. The defeasance clause releases the lien when the debt is paid.

A loan-to-value (LTV) ratio of 80% on a $300,000 home means the loan amount is:

• a.$375,000
• b.$240,000✓
• c.$60,000
• d.$300,000

LTV of 80% means the loan is 80% of the property's value: $300,000 x 0.80 = $240,000. The remaining $60,000 is the borrower's down payment (equity). Lower down payments (higher LTV) may require private mortgage insurance.

A contract signed by a 16-year-old minor to purchase real estate is generally:

• a.Voidable by the minor✓
• b.Void from the start
• c.Automatically enforceable after 30 days
• d.Fully enforceable against the minor

Contracts with a minor are generally voidable at the minor's option because minors lack full contractual capacity. The minor may disaffirm the contract. A void contract, by contrast, has no legal effect from the outset for either party.

A remedy that compels a defaulting seller to actually convey the specific property, because real estate is considered unique, is called:

• a.Specific performance✓
• b.Liquidated damages
• c.Reformation
• d.Rescission

Specific performance is an equitable remedy compelling a party to perform the contract, often used in real estate because each parcel is considered unique and money damages may be inadequate. A buyer may seek it when a seller wrongfully refuses to close.

An agency relationship in which the principal, by words or conduct, causes a third party to reasonably believe someone is their agent, is called agency by:

• a.Estoppel✓
• b.Necessity
• c.Ratification
• d.Express agreement

Agency by estoppel arises when a principal's words or conduct lead a third party to reasonably believe an agency exists, and the principal is then prevented (estopped) from denying it. Ratification is later approval of an act done without prior authority.

An agent's duty to keep and report accurate records of all money and property belonging to the client is the duty of:

• a.Accounting✓
• b.Care
• c.Loyalty
• d.Obedience

The duty of accounting requires the agent to accurately track and report all funds and property entrusted by the client, such as earnest money deposits. It supports the prohibition against commingling and conversion of client funds.

Under federal law, which disclosure must be provided to buyers and renters of most housing built before 1978?

• a.Lead-based paint disclosure✓
• b.Radon test results
• c.Flood elevation certificate
• d.Termite inspection report

The federal Residential Lead-Based Paint Hazard Reduction Act requires that sellers and landlords of most pre-1978 housing provide a lead-based paint disclosure, the EPA pamphlet, and, for sales, an opportunity for the buyer to test. Lead was banned from residential paint in 1978.

Acquiring title by openly, continuously, and exclusively using another's land without permission for the period set by law is called:

• a.Dedication
• b.Escheat
• c.Novation
• d.Adverse possession✓

Adverse possession lets a person gain title by possessing another's land in a way that is open, notorious, continuous, exclusive, and hostile (without permission) for the statutory period. Escheat is reversion to the state when an owner dies without heirs.

A broker persuades homeowners to sell by suggesting that members of a particular group are moving into the neighborhood and values will drop. This illegal practice is called:

• a.Steering
• b.Puffing
• c.Redlining
• d.Blockbusting✓

Blockbusting (panic selling) is inducing owners to sell by suggesting that people of a particular protected class are entering the area and that values or safety will decline. It violates the Fair Housing Act. Steering and redlining are separate prohibited practices.

The federal Fair Housing Act protects families with children under which protected class?

• a.Source of income
• b.Familial status✓
• c.Marital status
• d.Age

Familial status protects households with children under 18 and pregnant persons from housing discrimination. Marital status, age, and source of income are not federal protected classes, though some state or local laws add them.

A tenant remains in possession after the lease expires, without the landlord's consent. This creates a:

• a.Tenancy by the entirety
• b.Estate for years
• c.Freehold estate
• d.Tenancy at sufferance✓

A tenancy at sufferance arises when a tenant stays after the lease ends without the landlord's permission (a holdover). The landlord may treat the person as a trespasser or accept rent and create a periodic tenancy. An estate for years has a definite term.

A buyer's annual property tax is $6,000. At a closing on the first day of the fourth month, how much tax has accrued for the seller's portion of the year (using 12 equal months)?

• a.$500
• b.$1,500✓
• c.$6,000
• d.$2,000

Annual tax of $6,000 is $500 per month ($6,000 / 12). By the start of the fourth month, three full months have accrued to the seller: 3 x $500 = $1,500. That amount is typically credited to the buyer at closing if taxes are paid in arrears.

Massachusetts real estate salespersons and brokers are licensed by the:

• a.Massachusetts Department of Revenue
• b.Board of Registration of Real Estate Brokers and Salespersons✓
• c.Massachusetts MLS Association
• d.Federal Real Estate Bureau

Licensing is handled by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons, which operates under the state's occupational licensure division. It sets requirements, issues licenses, and disciplines licensees for violations.

In Massachusetts, which activity is a real estate salesperson generally NOT permitted to do?

• a.Present offers to a seller through the broker
• b.Hold an open house under the broker's supervision
• c.Show listed properties to buyers
• d.Independently hold client escrow funds in the salesperson's own account✓

A Massachusetts salesperson must work under the supervision of a licensed broker and may not independently hold client escrow funds; the broker is responsible for maintaining the escrow account. Salespersons may show property, host open houses, and handle offers under the broker's supervision.

Massachusetts requires licensees to present consumers with a mandatory agency disclosure form. This disclosure must generally be provided:

• a.Only at the closing table
• b.Only after a purchase contract is signed
• c.At the first personal meeting to discuss a specific property✓
• d.Never, because Massachusetts has no agency disclosure

Massachusetts requires the Mandatory Licensee-Consumer Relationship Disclosure to be presented at the first personal meeting between a licensee and a consumer to discuss a specific property, so the consumer understands whom the licensee represents before sharing information.

Massachusetts real estate law recognizes a relationship in which a licensee assists a buyer and seller without representing either as a client. This is known as a:

• a.Designated seller agent
• b.Dual agent
• c.Subagent of the buyer
• d.Facilitator (non-agent)✓

Massachusetts recognizes the facilitator relationship, in which a licensee helps parties reach an agreement without acting as the agent of either and without owing fiduciary duties of loyalty, though the facilitator must still be honest and account for funds.

Massachusetts is generally considered a 'buyer beware' (caveat emptor) state, but sellers and agents must still:

• a.Provide a state-mandated seller disclosure form for every sale
• b.Guarantee the home is free of all defects
• c.Disclose known material defects they are aware of✓
• d.Pay for the buyer's home inspection

Unlike many states, Massachusetts does not require a standardized statewide seller disclosure form; it follows caveat emptor. However, sellers and agents may not misrepresent the property and must disclose known material defects, and lead-paint disclosure is required for older homes.

Under the Massachusetts Lead Law, special obligations arise when a child under age 6 resides in a home built before 1978. The law primarily requires owners to:

• a.Ignore the paint if it looks intact
• b.Demolish the home
• c.Refuse to rent to families with children
• d.Address lead paint hazards, such as by removing or covering them✓

The Massachusetts Lead Law requires the removal or covering of lead paint hazards in homes built before 1978 where a child under six lives, to prevent lead poisoning. Refusing to rent to families with children would itself violate fair housing law.

How many hours of approved prelicensing education must a Massachusetts real estate salesperson applicant complete?

• a.24 hours
• b.90 hours
• c.No education is required
• d.40 hours✓

Massachusetts requires 40 hours of approved prelicensing education for a salesperson applicant, who must also be at least 18 and pass the licensing examination administered on behalf of the Board.

To keep a Massachusetts real estate license active, licensees must complete continuing education and renew the license. Massachusetts licenses are renewed on which cycle?

• a.Annually
• b.Every 5 years
• c.Every 2 years✓
• d.Every 6 months

Massachusetts real estate licenses are renewed every two years, and licensees must complete the required continuing education hours to renew. Staying current keeps licensees informed about changes in law and practice.

Massachusetts defines a real estate salesperson as someone who performs any act included in the definition of a broker, with a single exception. That exception is:

• a.Completing the negotiation of a purchase or lease✓
• b.Showing a listed property to a prospective purchaser
• c.Advertising that real property is available to rent
• d.Procuring prospects for the sale of real estate

M.G.L. c. 112, Section 87PP defines a salesman as an individual who performs any act in the broker definition 'except the completing of the negotiation of any agreement or transaction' resulting in a sale, exchange, purchase, renting or leasing. The other three acts sit squarely inside the broker definition, which is why a salesperson may do them while affiliated with a broker. Cite: M.G.L. c. 112, Section 87PP.

A person who has never held a Massachusetts license advertises himself as a real estate broker. Under M.G.L. c. 112, Section 87CCC the maximum fine is:

• a.$500✓
• b.$1,000
• c.$2,500
• d.$5,000

Section 87CCC provides that whoever acts as, or advertises that he is, a broker or salesman without the license required by Section 87RR 'shall be punished by a fine of not more than five hundred dollars.' The larger figures belong to other parts of the chapter: the blockbusting penalty in Section 87AAA runs from $1,000 to $2,500, and $5,000 is the broker's surety bond. Cite: M.G.L. c. 112, Section 87CCC.

No Massachusetts broker's license may be issued or renewed until the applicant files with the Board a surety bond, conditioned on faithfully accounting for funds entrusted to the broker, in the amount of:

• a.$1,000
• b.$2,500
• c.$5,000✓
• d.$10,000

M.G.L. c. 112, Section 87TT requires a bond of five thousand dollars, payable to the commonwealth for the benefit of any aggrieved person and conditioned on the broker's faithful accounting for entrusted funds. An aggrieved person may sue on the bond directly, and the Board may revoke a broker's license whenever the bond lapses. Salespersons file no bond. Cite: M.G.L. c. 112, Section 87TT.

A Massachusetts licensee solicits listings by telling owners that values will fall because of who is moving into the neighborhood. M.G.L. c. 112, Section 87AAA punishes this by a fine of:

• a.Not less than $100 nor more than $500
• b.Not less than $500 nor more than $1,000
• c.Not less than $1,000 nor more than $2,500✓
• d.Not less than $5,000 nor more than $10,000

Clause (k) of Section 87AAA reaches soliciting a sale or listing on the ground of an alleged change in value from the entry into the neighborhood of persons of another race, economic level, religion or ethnic origin. The stated penalty is a fine of not less than $1,000 nor more than $2,500, or imprisonment for not more than six months, or both, on top of license discipline. Cite: M.G.L. c. 112, Section 87AAA(k).

The Massachusetts Commission Against Discrimination makes a final finding that a broker violated M.G.L. c. 151B in the course of her brokerage work. The Board of Registration must then:

• a.Issue a written warning and record it on the license
• b.Hold its own hearing before touching the license
• c.Refer the file to the Attorney General for prosecution
• d.Suspend her license forthwith for a period of 60 days✓

On notice of a final MCAD finding, Section 87AAA directs the Board to 'suspend forthwith' the license for 60 days; where MCAD finds the violation occurred within two years of an earlier final violation, the suspension is 90 days. The suspension follows from MCAD's finding rather than from a fresh Board proceeding. Cite: M.G.L. c. 112, Section 87AAA.

A Massachusetts seller proposes this arrangement: list the house at $600,000 and the broker keeps whatever the sale brings above that figure. Accepting it is:

• a.Permitted once the seller signs a written acknowledgment
• b.Permitted for commercial listings but not residential ones
• c.A net listing, and a ground for license discipline✓
• d.Permitted if the excess is reported to the Board at closing

Clause (l) of Section 87AAA makes accepting a net listing from a prospective seller — an agreement to sell at a stated price letting the broker keep any excess as commission — a ground on which the Board may suspend, revoke or refuse to renew a license. 254 CMR 3.00(11)(c) separately bars a net listing in which the commission is unspecified. Written consent does not cure it. Cite: M.G.L. c. 112, Section 87AAA(l); 254 CMR 3.00(11)(c).

An unlicensed person negotiates a Massachusetts sale, and the seller then refuses to pay the fee he promised. In a Massachusetts court that person:

• a.May recover the reasonable value of the services performed
• b.May recover so long as the fee is under three percent
• c.May recover if the promise was in writing
• d.Cannot recover compensation for services as a broker✓

M.G.L. c. 112, Section 87RR bars any suit in the courts of the commonwealth for compensation for broker services performed within the commonwealth unless the person was duly licensed at the time the services were performed. The bar is on the remedy, so neither a written promise nor a modest fee revives the claim. Cite: M.G.L. c. 112, Section 87RR.

A Massachusetts salesperson is offered a thank-you payment directly by the buyer she helped find a home. Under M.G.L. c. 112, Section 87VV she may accept it:

• a.Only if it is a gift, not a commission
• b.Only if her broker waives the firm's share in writing
• c.Only if she discloses the buyer's payment to her broker
• d.Not at all; only her affiliated broker may pay her✓

Section 87VV forbids a licensed salesman affiliated with a broker to 'accept any valuable consideration for the performance of any act as a real estate salesman from any person except the broker with whom he is affiliated.' Section 87RR states the same rule. Disclosure or a broker's blessing does not create an exception. Cite: M.G.L. c. 112, Sections 87RR, 87VV.

A Massachusetts licensee is convicted of a misdemeanor in another state. Under 254 CMR 3.00 he must report the conviction to the Board within:

• a.7 days
• b.30 days✓
• c.90 days
• d.six months

254 CMR 3.00(14)(g) requires a broker or salesperson to report to the Board within 30 days a conviction of any crime, misdemeanor or felony, under the law of the commonwealth, the United States, or another jurisdiction where the conduct would be a crime in Massachusetts. Cite: 254 CMR 3.00(14)(g).

A Massachusetts broker who is the sole proprietor of his firm dies. On application by his legal representative, the Board may issue a temporary license that:

• a.Runs only after the representative passes the exam
• b.Runs until the probate court closes the estate
• c.Runs 90 days, renewable once
• d.Runs up to one year and cannot be renewed✓

M.G.L. c. 112, Section 87TT lets the Board issue, without examination, a temporary license to the deceased sole proprietor's legal representative or an approved designee, on filing the bond and paying the fee. It authorizes continuing the business for a period not exceeding one year from the date of death and expressly shall not be renewed. Cite: M.G.L. c. 112, Section 87TT.

The Massachusetts dual-agency and designated-agency statute, M.G.L. c. 112, Section 87AAA3/4, applies to transactions involving:

• a.Owner-occupied single-family homes and nothing else
• b.Land with a building intended for 1 to 4 residential dwellings✓
• c.Any parcel of real property located in the commonwealth
• d.Residential property rented for more than 100 days a year

Subsection (a) limits Section 87AAA3/4 to the intended purchase or sale of land with a building intended for use as 1 to 4 residential dwellings, or land on which a building is intended to be built for use as 1 or 2 residential dwellings. 254 CMR 3.00(13) draws the same line. Commercial and larger multifamily deals fall outside it. Cite: M.G.L. c. 112, Section 87AAA3/4(a).

Once a Massachusetts broker appoints a designated agent for a client, what the designated agent learns about that client is:

• a.Reportable to the designated agent on the other side
• b.Not imputed to the appointing broker or other affiliates✓
• c.Treated as known by every licensee in the brokerage firm
• d.Shared with the appointing broker as a supervisory matter

M.G.L. c. 112, Section 87AAA3/4(c) provides that when a designated agent is appointed, 'information known or acquired by the designated agent shall not be imputed to the appointing broker or salesman or to other affiliated licensees.' That non-imputation is what lets one firm hold both sides. Known material defects are the standing exception and must still be revealed. Cite: M.G.L. c. 112, Section 87AAA3/4(c); 254 CMR 3.00(13)(c)1.

A Massachusetts buyer refuses to sign the agency disclosure notice her salesperson hands her. The salesperson must:

• a.Note the date given and that the buyer declined to sign✓
• b.Have a second licensee witness and countersign it
• c.Stop working with the buyer until the notice is signed
• d.Send the unsigned notice to the Board within 30 days

254 CMR 3.00(13)(a)2. provides that where a prospective purchaser or seller declines to sign, the licensee shall make a notation of the date the notice was given and the fact that the consumer declined, and shall keep that notice for three years. Refusing to sign does not stop the relationship or trigger any Board filing. Cite: 254 CMR 3.00(13)(a)2.

How long must a Massachusetts licensee keep a copy of the agency disclosure notice given to a consumer?

• a.One year
• b.Two years
• c.Three years✓
• d.Seven years

254 CMR 3.00(13)(a)1. requires the licensee to provide the original to the consumer and 'maintain a copy with their records for a period of three years from the date on the notice.' The same three-year period runs for dual-agency and designated-agency consent forms and for escrow check copies. Cite: 254 CMR 3.00(13)(a)1.

A Massachusetts dual agent cannot fully satisfy the duties of loyalty, full disclosure, reasonable care and obedience. The consent form must state that the dual agent still owes:

• a.Confidentiality of material facts and accounting for funds✓
• b.A duty to negotiate the lowest achievable price for the buyer
• c.Undivided loyalty to whichever party consented first
• d.A written opinion of value for the property being sold

254 CMR 3.00(13)(b) requires the consent form to say that a dual agent is neutral between the parties and cannot fully satisfy loyalty, full disclosure, reasonable care and obedience, 'but shall still owe the duty of confidentiality of material information and the duty to account for funds' — and that confidentiality survives the end of the relationship. Cite: 254 CMR 3.00(13)(b).

A Massachusetts facilitator differs from an agent most importantly in that the facilitator:

• a.Owes no duty of confidentiality to the seller or the buyer✓
• b.May not be paid out of the proceeds of the sale
• c.May not show property listed by another brokerage firm
• d.Must be a licensed broker rather than a salesperson

254 CMR 3.00(13)(e) says a facilitator, also called a transaction broker, represents neither party, and that the facilitator 'does not have a duty of confidentiality with regard to any information received from the seller or purchaser.' M.G.L. c. 112, Section 87AAA3/4(f) authorizes the role. Nothing limits who may pay a facilitator or what a facilitator may show. Cite: 254 CMR 3.00(13)(e); M.G.L. c. 112, Section 87AAA3/4(f).

Working as a facilitator rather than an agent, a Massachusetts licensee is still required to:

• a.Obtain the buyer's written consent to dual agency
• b.Keep the seller's lowest acceptable price confidential
• c.Describe the property exactly as the seller describes it
• d.Disclose known material defects and account for funds✓

254 CMR 3.00(13)(e) gives the facilitator a duty to present all real property honestly and accurately, to disclose known material defects, and to account for funds, and requires written notice at the first personal meeting to discuss a specific property stating that no agency relationship exists. Confidentiality is precisely the duty a facilitator does not carry. Cite: 254 CMR 3.00(13)(e).

A Massachusetts broker appoints one affiliated licensee as the seller's designated agent and another as the buyer's designated agent in the same sale. The appointing broker is:

• a.Released from every agency duty to both parties
• b.Treated as the seller's agent because of the listing
• c.Required to withdraw the firm from the transaction
• d.Presumed to be a dual agent in that transaction✓

M.G.L. c. 112, Section 87AAA3/4(c) provides that when a broker has appointed designated agents for both buyer and seller, the broker is presumed to be a dual agent who exclusively represents neither. 254 CMR 3.00(13)(c) adds that the appointing broker stays neutral but continues to owe both parties confidentiality and the duty to account for funds, and remains liable for a designated agent's breach. Cite: M.G.L. c. 112, Section 87AAA3/4(c); 254 CMR 3.00(13)(c).

Before offering subagency to another firm on a Massachusetts listing, the listing licensee must:

• a.Confirm that the subagent carries errors-and-omissions cover
• b.Explain vicarious liability and get the seller's written consent✓
• c.Reduce the seller's commission by the subagent's share
• d.Get the Board's written approval of the cooperating firm

M.G.L. c. 112, Section 87AAA3/4(e) bars entering into or offering a subagency agreement when marketing a property without informing the seller about vicarious liability and obtaining written consent. 254 CMR 3.00(13)(d) requires that the written notice explain that vicarious liability is the seller's or buyer's potential liability for a subagent's misrepresentation, act or omission. Cite: M.G.L. c. 112, Section 87AAA3/4(e); 254 CMR 3.00(13)(d).

Massachusetts does not require written agency notice to every person who walks into an open house, provided the licensee:

• a.Conspicuously discloses the relationship by sign or literature✓
• b.Records the name and address of everyone who attends
• c.Announces the relationship aloud to arriving visitors
• d.Delivers the written notice to anyone who later submits an offer

254 CMR 3.00(13)(a)3. excuses written notice to each open-house visitor only where the licensee, by sign, poster, distributed listing literature or property description form, conspicuously discloses any pre-existing agency relationship — and where that disclosure appears in literature handed out at the open house it must be more conspicuous than any other written material. Cite: 254 CMR 3.00(13)(a)3.

Unless the parties agree otherwise in writing, money paid to a Massachusetts broker to hold during a pending transaction must be:

• a.Deposited within five business days
• b.Held in the broker's office safe until the closing
• c.Turned over at once to the seller's closing attorney
• d.Immediately deposited in a bank escrow account✓

254 CMR 3.00(10)(a) requires that, unless otherwise agreed in writing by the parties, all money of whatever kind paid over to a broker to hold during a pending transaction be immediately deposited in a bank escrow account, with the broker responsible for it until the deal is consummated or terminated. Cite: 254 CMR 3.00(10)(a).