New Massachusetts Broker Fees Law
What’s New?
As of August 1, 2025, Massachusetts law mandates that only the party who hires the broker - either the landlord or the tenant - must pay the broker fee. This means:
If a landlord hires the broker, the tenant does not pay the fee.
If a tenant initiates contact with a broker and signs a disclosure, they may be liable for the fee, even if it’s verbal or informal.
✅ How to Protect Yourself:
- Ask upfront: “Are you a broker?” “Who hired you for this listing?” “Will the renter be expected to pay a broker fee?”
- Request Written Fee Disclosures: Always ask for a written agreement that outlines who pays the fee. Don’t rely on verbal assurances; verbal engagement can still trigger liability.
- Read Everything Carefully: Review all paperwork before signing or attending showings. Look for terms like “exclusive representation” or “designated agency.”
- Walk Away If Unsure: If the terms aren’t clear or you’re uncomfortable, don’t proceed.
- Choose Trusted Brokers: If you decide you want to hire an agent to assist in your search, visit the Off-Campus Living Agent/Broker Page for a list of options. Not all agencies charge broker fees.
⚠️ Be Aware of:
- Open Houses: Attending without clarifying broker engagement may result in fee liability. Don’t sign in for the event without understanding fee responsibility.
- Emails, Calls, or Texts: Initiating contact with a broker can be interpreted as hiring them.
- Assumptions: Don’t assume “no fee” just because it wasn’t mentioned. Always ask and confirm.
