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Practice Of Real EstateLicense LawMEDIUM

Under Massachusetts law, all of the following are grounds for disciplinary action against a licensed real estate broker or salesperson by the Massachusetts Board of Registration EXCEPT:

Correct Answer

C) Earning a commission that both the buyer and seller have agreed to in writing

Earning a commission that has been agreed to in writing by all relevant parties is a lawful and standard practice in real estate brokerage — it is not a ground for disciplinary action. Massachusetts law permits real estate licensees to earn commissions for their services, and a mutually agreed-upon written commission arrangement is entirely proper. The Board's disciplinary authority targets misconduct, not legitimate compensation.

Answer Options
A
Commingling a client's escrow funds with the licensee's personal funds
B
Making a material misrepresentation to a buyer about the condition of a property
C
Earning a commission that both the buyer and seller have agreed to in writing
D
Failing to disclose a known material defect in a property being sold

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Related Topics & Key Terms

Key Terms:

grounds_for_disciplinecomminglingmisrepresentationcommissionboard_authority

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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