FREE Massachusetts Real Estate Exam Guide 2026: Complete License Prep

Massachusetts Real Estate License Overview

Massachusetts offers exceptional opportunities for real estate professionals with one of the highest-value housing markets in the nation. From the prestigious Boston and Cambridge markets to historic communities throughout the Commonwealth, Massachusetts real estate professionals work with premium properties and sophisticated buyers.

The Massachusetts Board of Registration of Real Estate Brokers and Salespersons oversees all licensing, ensuring agents meet strict standards. With a thriving economy driven by biotech, healthcare, education, and technology sectors, Massachusetts continues to attract professionals and investors, creating strong demand for licensed real estate agents.

One notable advantage: Massachusetts has one of the lowest pre-licensing education requirements in the country at just 40 hours.

Massachusetts Real Estate Exam Quick Facts

Requirements Before Taking the Exam

Education Requirements

Pre-License Course Content (40 Hours)

The required 40-hour course covers:

1. Basic Contract Law

   • Contract formation and elements
   • Types of contracts
   • Performance and breach

2. Federal and State Real Estate Laws

   • Fair housing laws
   • Massachusetts license law
   • Consumer protection

3. Property Rights

   • Ownership interests
   • Estates in land
   • Encumbrances and liens

4. Disclosures and Valuation

   • Required disclosures
   • Appraisal methods
   • Market analysis

5. Financing

   • Mortgage types
   • Lending regulations
   • Closing procedures

6. Agency Relationships

   • Types of agency
   • Fiduciary duties
   • Disclosure requirements

7. Brokerage Responsibilities

   • Trust accounts
   • Supervision
   • Record keeping

8. Real Estate Math

   • Commission calculations
   • Prorations
   • Area calculations

Application Process

1. Complete 40-hour pre-license course from approved school
2. Register and pay exam fee with PSI ($85)
3. Schedule exam at testing center or online
4. Pass both exam portions (70% each)
5. Pay license fee at testing center ($103-$150 prorated)
6. Receive license printed at testing center
7. Affiliate with sponsoring broker

Massachusetts Exam Format

The Massachusetts real estate exam consists of 120 questions covering national and state-specific content. The exam also includes pretest questions that do not affect your score.

Exam Structure

Note: Pretest questions are used by PSI to evaluate question quality and do not count toward your score.

Content Breakdown - National Portion (80 Questions)

Content Breakdown - State Portion (40 Questions)

Detailed Topic Coverage

Agency Relationships (13-15% National + State)

Fiduciary Duties (OLD CAR)

Massachusetts Disclosure Requirements

Real Estate Calculations (8-10%)

Note: Expect 8-10 math questions. Calculators are allowed (but not phone calculators).

Massachusetts-Specific Topics

Board of Registration of Real Estate Brokers and Salespersons

Mandatory Licensee-Consumer Relationship Disclosure

Massachusetts requires all licensees to present the Mandatory Licensee-Consumer Relationship Disclosure form:

• Required at first personal meeting to discuss specific residential property
• If no personal meeting, must be presented electronically before entering contract
• Updated form released September 2021
• Explains agency options: seller's agent, buyer's agent, dual agent, designated agent, facilitator

Agency Types in Massachusetts

Seller's Agent:

• Represents seller who is the client
• Owes undivided loyalty, reasonable care, disclosure, obedience, confidentiality, accounting
• Must put seller's interests first

Buyer's Agent:

• Represents buyer who is the client
• Same fiduciary duties as seller's agent
• Must disclose material facts affecting buyer

Designated Agency:

• Licensee designated by another licensee to represent buyer or seller
• Requires express agreement from client
• Designated agent owes full fiduciary duties to that client

Dual Agency:

• Represents both seller and buyer in same transaction
• Requires express written consent from both parties
• Cannot fully satisfy duties of loyalty and disclosure
• Must maintain confidentiality of material information

Non-Agent Facilitator:

• Helps seller and buyer agree on terms
• Does not represent either party
• Must present property honestly and disclose known material defects
• No fiduciary duties

Trust Account Requirements

Massachusetts requires proper handling of client funds:

• Earnest money deposits in escrow account
• Proper accounting and documentation
• No commingling of personal and client funds
• Regular reconciliation required

Massachusetts Contract Forms

Familiarize yourself with Massachusetts-specific forms:

• Standard Form Purchase and Sale Agreement
• Offer to Purchase
• Lead Paint Disclosure
• Mandatory Disclosure Form
• Agency Disclosure Form
• Listing Agreement forms

Massachusetts Exam Pass Rate

The Massachusetts real estate exam requires a 70% passing score on each portion. Key factors:

Study Strategy

Recommended Study Time

After completing the 40-hour pre-license education.

Study Priority by Topic

1. Agency & Disclosure - Critical for both portions

   • Massachusetts Mandatory Disclosure form
   • Fiduciary duties (OLD CAR)
   • Types of agency relationships

2. Contracts (12-15%)

   • Contract formation and elements
   • Massachusetts purchase agreements
   • Contingencies and performance

3. Practice of Real Estate (10-12%)

   • Brokerage operations
   • Fair housing compliance
   • Trust account requirements

4. Real Estate Calculations (8-10%)

   • Commission calculations
   • Prorations
   • Mortgage math

Key Math Formulas

Commission:

$\text{Commission} = \text{Sales Price} \times \text{Rate}$

$\text{Agent Share} = \text{Commission} \times \text{Split \%}$

Prorations:

$\text{Daily Rate} = \frac{\text{Annual Amount}}{365}$

$\text{Proration} = \text{Daily Rate} \times \text{Days}$

Property Tax:

$\text{Tax} = \text{Assessed Value} \times \text{Tax Rate}$

Loan-to-Value:

$\text{LTV} = \frac{\text{Loan Amount}}{\text{Property Value}}$

Capitalization Rate:

$\text{Cap Rate} = \frac{\text{NOI}}{\text{Property Value}}$

$\text{Value} = \frac{\text{NOI}}{\text{Cap Rate}}$

Common Mistakes to Avoid

1. Underestimating Massachusetts-Specific Content

Many candidates focus only on national content but miss Massachusetts-specific:

• Mandatory Licensee-Consumer Disclosure requirements
• Massachusetts agency law
• State-specific contract forms
• Board regulations (254 CMR)

2. Weak Math Skills

Math questions account for 8-10 questions. Practice daily:

• Commission calculations
• Prorations
• Area calculations
• Mortgage calculations

3. Confusing Agency Types

Know the differences between:

• Seller's Agent: Full fiduciary duties to seller
• Buyer's Agent: Full fiduciary duties to buyer
• Dual Agent: Limited duties, written consent required
• Facilitator: No representation, honesty only

4. Poor Time Management

• 120 questions in 4 hours = 2 minutes per question
• Account for pretest questions in timing
• Don't spend too long on difficult questions
• Flag and return later

Exam Day Tips

Before the Exam

• Get good rest the night before
• Eat a balanced meal
• Arrive 30 minutes early
• Bring two forms of ID (one with photo)
• Bring payment for license fee ($103-$150)

During the Exam

• Read every question completely
• Watch for "EXCEPT" and "NOT" questions
• Use your calculator for math (not phone calculator)
• Trust your first instinct
• Use all available time to review

What to Bring

• Two forms of ID (one government-issued with photo)
• Authorization to test (confirmation email)
• Payment for license fee (if you pass)
• Nothing else - personal items stored in locker

Testing Options

PSI offers the Massachusetts real estate exam:

In-Person Locations:

• Boston (Charlestown)
• Auburn
• Fall River
• Lawrence
• West Springfield

Online Proctored:

• Available through PSI website
• Take from home
• License mailed with instructions if passed online

Contact: PSI at (855) 340-3704

After Passing

Immediate Steps

1. Receive results on screen
2. Pay license fee at testing center ($103-$150 prorated)
3. Receive printed license at testing center (in-person)
4. For online test-takers - follow instructions for license pickup
5. Affiliate with sponsoring broker (required to practice)

License Timeline

Continuing Education

Massachusetts Real Estate Career Outlook

Salary Expectations

Hot Massachusetts Markets (2026)

• Boston - Urban core, historic properties, premium prices
• Cambridge - Harvard/MIT area, tech professionals, investors
• Brookline - Luxury homes, top schools, affluent families
• Newton - Suburban luxury, excellent schools
• Somerville - Up-and-coming, young professionals
• Cape Cod - Vacation homes, seasonal market
• Nantucket/Martha's Vineyard - Ultra-luxury vacation properties
• Worcester - Affordable alternative, growing market

Total Cost Breakdown

Note: Massachusetts has one of the lowest total costs to get licensed due to the low education requirement.

Resources

• Mass.gov Real Estate - Official licensing information
• Board of Registration - FAQ and regulations
• PSI Exams - Exam scheduling and information
• PSI Candidate Bulletin - Official exam guide
• OpenExamPrep - Free study materials and practice questions

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