THE GOVERNOR AND ATTORNEY GENERAL WARN ABOUT ILLEGAL RENTER-PAID BROKER FEES

By Bob Katzen

A new law that took effect last August requires landlords, instead of renters, to cover the cost of broker fees unless a renter is the one to hire the broker first.

Amidst reports that some brokers and landlords are attempting to illegally charge these fees to renters, Gov. Maura Healey and Attorney General Andrea Campbell last week reminded renters, landlords and brokers that under Massachusetts law, a broker fee may only be charged to the party who hired the broker. Both offices say they are working to ensure renters understand their rights and that landlords and brokers understand their obligations.

“Any broker or landlord who continues trying to charge illegal fees is breaking the law, taking advantage of renters who are already struggling with high housing costs and will be at risk of losing their license,” said Healey. “Renters should know their rights, and if anyone tries to charge them unlawful fees, they should report it immediately.”

“This law establishes a clear standard: a broker may only charge a tenant a fee if the broker is working for the tenant and not for the landlord,” said Campbell. “I encourage anyone who may have been charged an unlawful fee to report it, so that my office can continue protecting renters and helping ensure compliance with the new law.”

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