I. DUTIES AND POWERS OF THE BOARD OF REGISTRATION OF REAL ESTATE BROKERS AND SALESPERSONS (5%)(SALESPERSONS: 2 ITEMS; BROKERS: 2 ITEMS) 

    A. Examination of records 

    B. Sanctions 1. Fines 2. License suspension and revocation 

II. LICENSING REQUIREMENTS (10%) (SALESPERSONS: 4 ITEMS; BROKERS: 4 ITEMS) 

    A. Activities requiring a license

    B. Types of licenses 

        1. Active, inactive, and expired valuation 

        2. General steps in appraisal process 

        3. Situations requiring appraisal by certified appraiser

     B. Estimating Value 

        1. Effect of economic principles and property characteristics 

            2. Sales or market comparison approach 

        3. Cost approach 4. Income analysis approach 

    C. Competitive/Comparative Market Analysis 

        1. Selecting comparables 

        2. Adjusting comparables

IV. Financing (Salesperson 10%; Broker 8%) 

    A. Basic concepts and terminology 

        1. Points 

        2. LTV 

        3. PMI 

        4. Interest 

        5. PITI 

        6. Financing instruments (mortgage, promissory note, etc.) 

    B. Types of loans 

        1. Conventional loans 

        2. FHA Insured loans 

        3. VA guaranteed loans 

        4. USDA/rural loan programs 

        5. Amortized loans 

        6. Adjustable-rate mortgage loans 

        7. Bridge loans 

        8. Owner financing (installment and land contract/contract for deed) 

    C. Financing and lending 

        1. Lending process application through closing 

        2. Financing and credit laws and rules 

            a) Truth in lending 

            b) RESPA 

            c) Equal Credit Opportunity 

            d) CFPB/TRID rules on financing and risky loan features 

        3. Underwriting 

            a) Debt ratios 

            b) Credit scoring 

            c) Credit history

V. General principles of agency (Salesperson 13%; Broker 11%) 

    A. Agency and non-agency relationships 

        1. Types of agents and agencies 

        2. Other brokerage relationships (non-agents) 

            a) Transactional 

            b) Facilitators 

    B. Agent’s duties to clients 

        1. Fiduciary responsibilities 

        2. Traditional agency duties (COALD) 

        3. Powers of attorney and other delegation of authority 

    C. Creation of agency and non-agency

VIII. Leasing and Property Management (Salesperson 3%; Broker 5%) 

    A. Basic concepts/duties of property management 

    B. Lease Agreements 

        1. Types of leases, e.g., percentage, gross, net, ground 

        2. Key elements and provisions of lease agreements 

    C. Landlord and tenant rights and obligations 

    D. Property manager’s fiduciary responsibilities 

    E. ADA and Fair Housing compliance in property management 

    F. Setting rents and lease rates (BROKER ONLY)

IX. Transfer of Title (Salesperson 8%; Broker 7%) 

    A. Title Insurance 

        1. What is insured against 

        2. Title searches, title abstracts, chain of title 

        3. Marketable vs insurable title 

        4. Potential title problems and resolution 

        5. Cloud on title, suit to quiet title (BROKER ONLY) 

    B. Deeds 

        1. Purpose of deed, when title passes 

        2. Types of deeds and when used 

        3. Essential elements of deeds 

        4. Importance of recording 

    C. Escrow or closing; tax aspects of transferring title to real property 

        1. Responsibilities of escrow agent 

        2. Prorated items 

        3. Closing statements/TRID disclosures 

        4. Estimating closing costs 

        5. Property and income taxes 

    D. Special processes 

        1. Foreclosure 

        2. Short sale 

    E. Warranties 

        1. Purpose of home or construction warranty programs 

        2. Scope of home or construction warranty programs

X. Practice of real estate (Salesperson 13%; Broker 14%) 

    A. Trust/escrow accounts 

        1. Purpose and definition of trust accounts,  including monies held in trust accounts 

        2. Responsibility for trust monies, including commingling/conversion 

    B. Federal fair housing laws and the ADA 

        1. Protected classes 

        2. Prohibited conduct (red-lining, blockbusting, steering) 

        3. Americans with Disabilities (ADA) 

        4. Exemptions 

    C. Advertising and technology 

        1. Advertising practices 

            a) Truth in advertising

            C. License renewal and continuing education 

            D. Board notifications

III. REQUIREMENTS GOVERNING LICENSEES (33- 35%) (SALESPERSONS: 13 ITEMS; BROKERS: 14 ITEMS) 

    A. Advertising 

    B. Broker/salesperson relationship 

    C. Commissions 

    D. Disclosures 

        1. Consumer/Licensee Relationship 

        2. Conflict of interest 

        3. Rental fee disclosures 

    E. Agency and Non-Agency Relationships 

    F. Handling of documents 

    G. Handling of monies 

    H. Record Keeping (Broker only) I. Home inspectors--licensee responsibility 

IV. CONTRACTS (5%)(SALESPERSONS: 2 ITEMS; BROKERS: 2 ITEMS) 

    A. Offer to Purchase 

    B. Purchase and Sale agreement 

    C. Leases 

    D. Listing and Buyer Agreements 

V. CONSUMER PROTECTION LAWS (10-12%) (SALESPERSONS: 5 ITEMS; BROKERS: 4 ITEMS) 

    A. Property disclosures 

    B. Misrepresentation 

    C. Privacy 

    D. Sanctions and enforcements 

VI. ENVIRONMENTAL ISSUES AND HAZARDOUS MATERIALS (10%) (SALESPERSONS: 4 ITEMS; BROKERS: 4 ITEMS) 

    A. Lead 

    B. Private sewage disposal 

    C. Smoke and carbon monoxide detection

    D. Wetlands and rivers protection

VII. MASSACHUSETTS FAIR HOUSING LAW (10%) (SALESPERSONS: 4 ITEMS; BROKERS: 4 ITEMS) 

    A. Protected classes that differ from Federal

    B. MA specific exceptions 

    C. MA Commission Against Discrimination

    D. ADA and other accommodations 

VIII. LANDLORD TENANT LAW (10%) (SALESPERSONS: 4 ITEMS; BROKERS: 4 ITEMS) 

    A. Rental deposits, Receipts and Statement of Condition 

    B. State Sanitary Code 

    C. Short-term Vacation or Recreational Rentals 

IX. ADDITIONAL TOPICS (5%)(SALESPERSONS: 2 ITEMS; BROKERS: 2 ITEMS) 

    A. Ownership 

    B. Condominiums, Cooperatives, and Timeshares 

    C. Registered Land