By Bob Katzen

The House gave initial approval to legislation requiring that in real estate transactions, the fees associated with hiring brokers are paid by the party who hires them.

“It is common practice in the Massachusetts rental market for landlords to hire brokers to list properties and execute lease agreements,” said sponsor Rep. Paul Schmid. “The landlords then pass off the broker’s fee, often half to a full month rent, onto the tenant making the housing market increasingly unaffordable. This bill would ensure that whoever hires the broker, landlord or tenant, pays the fees.