| Property disclosures |
A. Property condition
1. Property condition that may warrant
inspections and surveys
2. Proposed uses or changes in uses that
should trigger inquiry about public or
private land use controls
B. Environmental issues requiring disclosure
C. Government disclosure requirements (LEAD)
D. Material facts and defect disclosure
VII. Contracts (Salesperson 17%; Broker 18%)
A. General knowledge of contract law
1. Requirements for validity
2. Factors affecting enforceability of
contracts
3. Void, voidable, unenforceable contracts
4. Rights and obligations of parties to a
contract
5. Executory and executed contracts
6. Notice, delivery and acceptance of
contracts
7. Breach of contract and remedies for
breach
8. Termination, rescission and cancellation of
contracts
9. Electronic signature and paperless
transactions
10. Bilateral vs. unilateral contracts (option
agreements)
B. Contract Clauses, including amendments and
addenda
C. Offers/purchase agreements
1. General requirements
2. When offer becomes binding
3. Contingencies
4. Time is of the essence
D. Counteroffers/multiple offers
1. Counteroffers
2. Multiple offers
|
| General principles of agency |
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 delegations of
authority
C. Creation of agency and non-agency
1. Agency and agency agreements
a) Key elements of different types of
listing contracts
b) Key elements of buyer
brokerage/tenant representation
contracts
2. Disclosure when acting as principal or
other conflict of interest
D. Responsibilities of agent to customers and
third parties, including disclosure, honesty,
integrity, accounting for money
E. Termination of agency
1. Expiration
2. Completion/performance
3. Termination by force of law
4. Destruction of property/death of
principal
5. Mutual agreement |
| Financing |
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 |
| Land use controls and regulations |
A. Government rights in land
1. Property taxes and special assessments
2. Eminent domain, condemnation,
escheat
B. Government controls
1. Zoning and master plans
2. Building codes
3. Regulation of special land types
a) Flood zones
b) Wet lands
4. Regulation of environmental hazards
a) Types of hazards
b) Abatement and mitigation
c) Restrictions on contaminated
property
C. Private controls
1. Deed conditions or restrictions
2. Covenants, conditions, and restrictions
(CC&Rs)
3. Homeowners association regulations |
| Leasing and Property Management |
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) |
| Transfer of Title |
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 |
| Practice of real estate |
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
2. Use of technology
a) Requirements for confidential
information
b) Do-Not-Call List
D. Licensee and responsibilities
1. Employee
2. Independent Contractor
3. Due diligence for real estate
transactions
4. Supervisory responsibilities (BROKER
ONLY)
a) Licensees
b) Unlicensed personnel
E. Antitrust laws
1. Antitrust laws and purpose
2. Antitrust violations in real estate
XI. Real estate calculations (Salesperson 10%;
Broker 8%)
A. Basic math concepts
1. Loan-to-value ratios
2. Discount points
3. Equity
4. Down payment/amount to be financed
B. Calculations for transactions
1. Property tax calculations
2. Proration’s
3. Commission and commission splits
4. Seller’s proceeds of sale
5. Buyer funds needed at closing
6. Transfer fee/conveyance tax/revenue
stamps
7. PITI (Principal, Interest, Taxes and
Insurance) payments
C. Calculations for valuation, rate of return
(BROKER ONLY)
1. Net operating income
2. Depreciation
3. Capitalization rate
4. Gross Rent and gross income multipliers
STATE PORTION
(MASSACHUSETTS STATE REAL ESTATE LAWS
AND REAL ESTATE BOARD RULES)
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 |
| Licensing Requirements |
A. Activities requiring a license
B. Types of licenses
1. Active, inactive, and expired
C. License renewal and continuing education
D. Board notifications |
| Requirements Governing Licensees |
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 |
| Contracts |
A. Offer to Purchase
B. Purchase and Sale agreement
C. Leases
D. Listing and Buyer Agreements |
| Consumer Protection Laws |
A. Property disclosures
B. Misrepresentation
C. Privacy
D. Sanctions and enforcements
VI. ENVIRONMENTAL ISSUES AND HAZARDOUS |
| Materials |
A. Lead
B. Private sewage disposal
C. Smoke and carbon monoxide detection
D. Wetlands and rivers protection |
| Massachusetts Fair Housing Law |
A. Protected classes that differ from Federal
B. MA specific exceptions
C. MA Commission Against Discrimination
D. ADA and other accommodations |
| Landlord Tenant Law |
A. Rental deposits, Receipts and Statement of
Condition
B. State Sanitary Code
C. Short-term Vacation or Recreational Rentals |
| Official Information |
|
