Discuss Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam Topic 3 Question 14

The Massachusetts Consumer Protection Act (M.G.L. c. 93A) does NOT apply to which of the following persons?

AOwners who sell their homes privately

BListing brokers who receive only a percentage of commissions

CBuilders who sell fewer than ten homes a year

DSalespersons since they are obligated to their employing brokers only

Suggested Answer: A

The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits ''unfair or deceptive acts or practices in the conduct of any trade or commerce.'' This law applies to persons engaged in business transactions, including brokers, salespersons, and builders selling homes.

However, a private homeowner selling their own home without engaging in trade or commerce is exempt. Courts have consistently held that Chapter 93A applies to persons ''engaged in business'' and does not cover purely private, non-business transactions such as a homeowner selling their own single residence.

Thus, while brokers, agents, and even builders are covered by c. 93A (even if they build/sell fewer than ten homes), a private owner selling without brokerage or business involvement is exempt.

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24 comments · newest first

Noel 2 days ago

I don't know much, but D seems logical.

Keshia 7 days ago

True, but they still engage in commerce. D feels safest.

Jennie 12 days ago

C is tricky. Builders selling fewer than ten homes?

Fredric 18 days ago

But A is still a seller. They can’t be exempt.

Merlyn 23 days ago

I was leaning towards A. Private sellers should be protected too.

Nickolas 28 days ago

Agreed, D makes sense. They have no direct consumer obligations.

Brigette 1 month ago

I think it's D. Salespersons are tied to brokers.

Nenita 1 month ago

Definitely D. Salespersons aren't independent.

Ahmed 1 month ago

I don't know much, but D seems logical.

Daron 2 months ago

True, but they still engage in commerce. D feels safest.

Lai 2 months ago

C is tricky. Builders selling fewer than ten homes?

Bette 2 months ago

But A is still a seller. They can’t be exempt.

Kattie 2 months ago

I was leaning towards A. Private sellers should be protected too.

Ben 2 months ago

Agreed, D makes sense. They have no direct consumer obligations.

Olive 2 months ago

I think it's D. Salespersons are tied to brokers.

Dominga 3 months ago

Listing brokers are only commission-based, so B is correct too!

Kayleigh 3 months ago

D seems a bit odd, how can salespersons not be included?

Tony 3 months ago

Wait, are you sure about C? I thought builders had some obligations regardless of the number.

Rodolfo 3 months ago

Totally agree, that makes sense!

Larae 3 months ago

A) Owners who sell their homes privately are exempt.

Willetta 4 months ago

I’m confused about D. Salespersons are tied to their brokers, but does that mean they’re exempt from the Act?

Buddy 5 months ago

I’m leaning towards C because I recall that small builders have some exemptions under consumer protection laws.

Johnathon 5 months ago

I feel like I saw a similar question about brokers and their commission structures. Could it be B?

Melodie 5 months ago

I think the answer might be A, but I'm not entirely sure. I remember something about private sales being exempt.

Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam - Topic 3 Question 14 Discussion