What do I need to do to become licensed as a real estate salesperson or broker in Massachusetts?

To become licensed as a salesperson or broker in Massachusetts you must complete the requisite education, complete the appropriate licensing application and pass the relevant examination. At the outset you must become licensed as a salesperson before you can become a broker. To become licensed as a salesperson you must complete forty (40) hours of education at any one of the Board approved real estate schools (the education is in various subject matter areas). For a list of schools, see the list of Authorized Real Estate Schools in Massachusetts on this site. You can also check in your Yellow Pages under real estate schools.

Once your education is complete the school will provide you with a “Candidate Handbook” which will contain verification of your completed education and information to make an appointment to take the salesperson examination with the Board’s test administrator. All information to take the examination will be contained in the Candidate Handbook. Upon passing the examination you will be licensed at the test center.

Those salespersons who seek licensure as brokers follow the same practice outlined for salespersons above. There are, however, two differences. First, those seeking licensure as brokers must complete forty (40) hours of education at a Board approved real estate school (that is in addition to the salesperson education). Second, salespeople must work for a broker for at least three (3) years before they can move on to licensure as brokers (the work experience must either be current or completed no more than two (2) years prior to the time of broker examination and licensure). Once your education is complete the school will provide you with a “Candidate Handbook” and you may contact the Board’s test administrator to take the examination. Upon passing the examination you will be licensed at the test center.

If you would like more information on licensure, please contact the Massachusetts Board of Registration of Real Estate Brokers and Salespersons at (617) 727-2373.

I worked as a salesperson several years ago, may I use that experience to obtain my broker license?

You may use prior salesperson experience so long as the experience is not over two (2) years old and/or there has not been a two (2) year gap in time between your current and past salesperson experience.

What are the rules and what regulations must I know in order to become licensed and maintain a real estate license in Massachusetts?

(1) Purpose. 254 CMR 2.00 sets forth the application procedures, examination, experience, good moral character requirements for licensure.

(2) Applications. Applications for licenses shall be made on forms furnished by the Board and shall be accompanied by the prescribed fee.

(3) Examinations. No broker or salesperson license shall be issued to any individual unless such individual satisfactorily passes a written examination conducted by the Board or its agent. Prior to taking the examination applicants must submit certification to the Board that the required education has been completed. This certification shall be valid for a period not to exceed 24 months following the date on which the education was completed. Any applicant who is an attorney at law in good standing of this Commonwealth shall not be required to take such examination.

(4) Re-Examination. An individual who fails to pass the written examination for a real estate broker or salesperson may be re-examined by paying the prescribed fee.

(5) License Fees. An individual who has been notified of passing the examination for real estate broker or salesperson must pay the prescribed fee within 30 days from the date of notification. If the required fee is not paid within the specified time period the individual shall be required to be re-examined and pay the prescribed fee for such examination. This requirement may be waived by the Board upon showing of good cause.

(6) Experience Requirement for License as a Broker. A salesperson seeking licensure as a real estate broker must:

(a) Be employed or affiliated with a licensed real estate broker in performing those activities as defined (for licensed salespeople) in M.G.L.c. 112, § 87PP for at least one year. The Board shall determine the form and manner to verify such employment or affiliation.

(b) Be employed or affiliated with such licensed real estate broker for a minimum of twenty-five hours per calendar week under the supervision of such broker.

(c) Obtain licensure as a real estate broker within two years of the date that such employment or affiliation as a real estate salesperson is terminated.
(7) Moral Character. Each individual seeking a license as a broker or salesperson shall furnish evidence of good moral character. Applications for a license shall be accompanied by the recommendations of three reputable citizens, not related to the applicant, who reside in or have their place of business in the Commonwealth. Each recommendation shall certify that the individual bears a good reputation for honesty and fair dealing and shall recommend that a license be granted to such individual.

(8) Personal Appearance. Applicants may be required to appear at the office of the Board for an interview.

(9) Qualification Reports. The Board may require each individual seeking a license to submit a report from an independent source pertaining to the individual’s previous occupation or any other information which is material to the qualification of such individual for a license.

(10) Surety Bonds. No broker’s license shall issue or be renewed until such broker gives the Board the bond required by M.G.L. c. 112, § 87TT.

(11) Business Entities. No licensee may engage in the business of real estate brokering in a corporation, limited liability company (LLC), partnership, limited liability partnership (LLP), association or society unless the entity is licensed by the Board.

No broker’s license shall issue to a corporation, LLC, partnership, LLP, association or society unless an officer in such corporation, society or association or partner in a partnership is a licensed broker in the Commonwealth and designated as the broker of record for the entity. The broker of record must be currently licensed at all times, otherwise the license of the entity shall cease. The broker of record shall be in responsible charge of the business entity and personally responsible for the acts of the entity and its employees and agents.
(12) LLC, LLP Insurance. An LLC and LLP must maintain professional liability insurance which meets the following minimum standards:

(a) The insurance shall cover negligence, wrongful acts, errors and omissions and insure the LLC and it officers or the LLP and its partners as required by M.G.L. c. 156C, §. 65 and M.G.L. c. 108A, §. 45(8)(a).

(b) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or officers of, the LLC, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or officers of, the LLC.

(c) The insurance shall be in an amount for each claim of at least $50,000 multiplied by the number of individual licensees employed by, or partners of, the LLP, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees who are employed by, or partners of, the LLP.

(d) The requirements of 254 CMR 2.00(12) shall be satisfied if the LLC or LLP maintains insurance sufficient to provide coverage at a level of at least $300,000 for each claim with an aggregate top limit of liability for all claims, during any one year, of at least $1,000,000; and

(e) The insurance required by 254 CMR 2.00(12) may provide that it does not apply to any dishonest, fraudulent, criminal, or malicious act or omission of the insured LLC, or any officer or employee thereof, or the LLP, or any partner or employee thereof.

(f) Cancellation or any other interruption in required insurance coverage shall require the LLC or LLP to immediately cease the practice of real estate brokering until such time as the LLC or LLP is in compliance with 254 CMR 2.00(12).

(g) An LLC or LLP must notify the Board within 5 business days, if the LLC or LLP insurance coverage is canceled or otherwise interrupted. Failure to provide required notice to the Board will subject the LLC and its officers or the LLP and its partners who are licensed by the Board to disciplinary action pursuant to M.G.L. c. 112, § 87AAA.

(h) An LLC or LLP may be required to provide verification of compliance with 254 CMR 2.00(12), satisfactory to the Board, when it seeks initial licensure, the renewal of such license and at any other time at the request of the Board.
(13) Reciprocal Licensure. The Board may issue a real estate salesperson or brokers license to individuals licensed in other states or jurisdictions without requiring the satisfaction of the education and examination requirements where such other state or jurisdiction has laws similar to the Commonwealth governing the practice of real estate brokering and extends the same privilege to licensed Massachusetts real estate brokers and salespersons. Applicants for reciprocal licensure shall apply on the form provided by the Board and pay the prescribed fee.

(14) License Renewal. No license may be renewed later than one year following the expiration of such license nor may any broker or salesperson practice when such license has expired. Any license renewal sought after license expiration but prior to the end of the one year grace period must be on the form provided by the Board and verify to the Board’s satisfaction completion of continuing education as required by M.G.L. c. 112, § 87XX 1/2, and be accompanied by the prescribed fee.

Do I need to hire a real estate broker to sell my home?

No, you need not hire a broker. A homeowner can choose to sell his or her own home. A real estate broker is employed when the homeowner has decided to utilize the services of a broker in selling the home and that broker becomes your agent representing you. This commonly occurs when the broker enters into a “listing agreement” with the seller to sell the home.

You may not sell real estate without a license if you do not own the property.

Authorized Real Estate Schools in Massachusetts