Discuss Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam Topic 4 Question 5

The provisions of the Real Estate License Law apply to which of the following individuals?

AA regular employee of a property owner who conducts lease transactions on the property

BA licensed person who for a fee receives a referral from a licensed broker

CA property manager who handles the sale of units within a managed condominium complex

DSalespersons who sell their primary residences

Suggested Answer: C

The Massachusetts Real Estate License Law (M.G.L. c. 112, 87PP--87DDD) applies to anyone who engages in the business of buying, selling, leasing, or negotiating real estate transactions for a fee, commission, or other valuable consideration, unless specifically exempt.

Exemptions include:

Regular salaried employees of property owners who lease or manage property owned by their employer (no license needed).

Salespersons selling their own primary residence (no license needed, as owners always may sell their own property).

Referrals: A licensed person may receive compensation, but unlicensed referral fees are prohibited.

A property manager who handles sales of units (not just leasing or maintenance) is engaged in brokerage activities requiring a license. Therefore, the Real Estate License Law applies in this case.

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14 comments · newest first

Leah 10 months ago

Regular employees doing leases? That's a gray area for sure.

Ozell 10 months ago

Totally agree, option C is a clear yes!

Tamar 10 months ago

I thought salespersons selling their own homes were exempt?

Matthew 10 months ago

A property manager selling units definitely falls under the law.

Denna 10 months ago

Wait, are you sure about that referral fee thing?

Isadora 11 months ago

I feel like option C is definitely covered by the law since property managers often deal with sales, but I need to double-check that.

Merlyn 11 months ago

I’m a bit confused about whether salespersons selling their own homes are included. I thought they might be exempt.

Gertude 11 months ago

I remember a practice question about licensed brokers and referrals, so I feel like option B might be relevant too.

Kaycee 11 months ago

I think the law applies to property managers, but I'm not sure if it covers regular employees doing lease transactions.

Frank 12 months ago

Alright, let me think this through step-by-step. The law applies to licensed real estate professionals, so that rules out the regular employee and the homeowners. The property manager and the referral recipient seem more relevant, but I'll need to double-check the specifics of the law.

Ernest 12 months ago

This is a good one to apply my knowledge of the Real Estate License Law. I'm pretty confident I can eliminate a couple of these options and narrow it down to the correct answer.

Yolande 12 months ago

I'm a little confused by the wording here. Does the law apply to anyone involved in real estate transactions, or just licensed agents? I'll need to re-read the question and think through each option carefully.

Nakita 1 year ago

Okay, I think I've got this. The law applies to licensed real estate professionals, so that rules out the regular employee and the salespersons selling their own homes. The property manager and the licensed person receiving a referral fee seem more relevant.

Reed 1 year ago

Hmm, this seems like a tricky one. I'll need to carefully review the key details about the Real Estate License Law to determine which individuals it applies to.

Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam - Topic 4 Question 5 Discussion