Discuss Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam Topic 6 Question 15

A licensee must provide disclosure of licensed status when acting as a principal if

Athe agent of the other party asks about this specifically.

Bthe licensee does not have errors and omission insurance.

Cthe licensee has any economic interest in the property.

Dany relative of the licensee has ever lived in the residence.

Suggested Answer: C

Under Massachusetts license law (254 CMR 3.00), a real estate licensee who acts as a principal in a transaction (buyer, seller, lessor, or lessee) must disclose in writing that they are a licensed broker or salesperson if they hold any direct or indirect ownership or economic interest in the property.

This rule is intended to protect the public from potential conflicts of interest and ensure transparency. The disclosure must be made in writing before entering into any binding contract.

Simply being asked (A) is not enough; disclosure is mandatory regardless.

Insurance coverage (B) is irrelevant.

Family members (D) may trigger disclosure if the licensee has an ownership/economic interest, but not merely because they lived there.

Correct answer: C.

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22 comments · newest first

Florinda 2 days ago

Agreed, C makes sense. Transparency is key.

Timothy 7 days ago

I think it's C. Economic interest is crucial.

Paris 12 days ago

I lean towards C too. Protects everyone involved.

Clement 18 days ago

B is tricky. No insurance raises red flags.

Jodi 23 days ago

D feels irrelevant. Past relatives shouldn’t matter.

Roosevelt 28 days ago

A could also be valid. If asked, you must disclose.

Rachael 1 month ago

I agree, C makes sense. Transparency is key.

Jose 1 month ago

I think it's C. Economic interest is crucial.

Isadora 1 month ago

Not sure about this. Why would it matter if a relative lived there?

Aretha 2 months ago

Totally agree with A. Transparency is crucial!

Merissa 2 months ago

Wait, D? A relative living there? That seems odd.

Margery 2 months ago

I disagree, it should be C. Any economic interest is key!

Alesia 2 months ago

It's definitely A. They have to disclose if asked.

Rickie 2 months ago

I’m surprised this isn’t more straightforward!

Beckie 2 months ago

Wait, D? That seems a bit extreme.

Noel 3 months ago

Totally agree with A, but what about B?

Catina 3 months ago

I thought it was C? Economic interest seems key.

Shaun 3 months ago

It's definitely A! If they ask, you gotta disclose.

Lang 3 months ago

I honestly can’t remember if it’s about having insurance or not. B seems plausible, but I think it’s more about the relationship to the property.

Chu 3 months ago

I’m leaning towards A, but I could be mixing it up with another topic. Disclosures seem to come up a lot in our studies.

Lemuel 4 months ago

I feel like I saw a question similar to this in our practice tests. Was it about whether the agent has to disclose their status if asked?

Jacquelyne 5 months ago

I think the answer might be C, but I'm not completely sure. I remember something about economic interest being a key factor in disclosures.

Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam - Topic 6 Question 15 Discussion