Instructor: It is the responsibility of the instructor to be sure all information is up to date and current.
Course Description:
This course is designed to provide real estate brokers and salespersons with the legal knowledge and practical tools needed to professionally and ethically handle residential rental transactions. With a focus on regulatory compliance, fiduciary duties, and tenant protections, Part 1 offers a comprehensive foundation on rental brokerage, including recent updates to Massachusetts broker fee laws, eviction record sealing, and junk fees.
I. License Requirements
Objective: Understand who is legally required to hold a license when engaging in rental brokerage and recognize legal exceptions.
- A. Licensing law (M.G.L. c. 112, § 87 DDD 1/2)
- Overview of required licensure for showing property, negotiating leases, and collecting fees
- Discussion of enforcement and penalties for unlicensed activity
- B. Exception for property management agents (M.G.L. c. 112, § 87 QQ)
- Scope of exemption when acting under a property management contract
- Clarification of duties that still require licensure (e.g., showing units)
II. Listings for Residential Leasing
Objective: Identify the types of residential rental listings and understand best practices for documenting listing agreements.
- A. Exclusive listings
- Definition and benefits of exclusive agreements
- Importance of written agreements for legal protection
- B. Open/non-exclusive listings
- Risks and practical considerations when working with multiple licensees
- Best practices for verbal and informal arrangements
III. Broker Fee Disclosure Requirements
Objective: Comprehend and apply the updated laws governing written fee disclosures and broker compensation.
- A. Timing of disclosure: Required at the first personal person meeting to discuss rental property
- B. Required elements of written disclosure:
- Whether a tenant will be charged a broker fee
- Specific dollar amount or percentage of rent
- When the fee is due (e.g., at lease signing)
- Whether the fee is due regardless of tenancy outcome
- Licensee’s name, license number, and dated signature
- Prospective tenant’s signature or note of refusal
- The fee disclosure requirement applies to all residential rentals.
- C. Disclosure must be retained for at least 3 years and made available for Board inspection
- D. (Effective August 1, 2025):
- Licensee can only contract with either the tenant or the landlord but not both.
- The party who contracts with the broker is responsible for paying the broker’s fee.
- A broker’s fee may be charged to the tenant only if the tenant has directly hired the broker.
- A broker’s fee may be charged to the landlord only if the landlord has directly hired the broker.
- Misrepresenting who is responsible for the broker fee may lead to disciplinary action.
E. Effective September 2, 2025 Massachusetts Junk Law (940 CMR 38.00)
- All fees must be disclosed upfront
- Must be identified before a prospective tenant gives personal information
- No surprise add-ons after a tenant has already submitted an application
- Renewal or lease continuing charges must be disclosed upfront.
- Any rentals advertised must reflect the true all-in cost.
In short: no more hidden rental application fees, surprise broker charges, or undisclosed add-ons in real estate advertising or transactions. Everything must be clear, upfront, and all-in before the consumer gives personal details or commits.
IV. Leasing Process and Tenant Screening
Objective: Apply best practices and legal standards for screening tenants and initiating rental agreements.
- A. Tenant Screening
- Understand and comply with federal and state Fair Housing laws, including protections based on race, color, religion, sex, national origin, disability, familial status, and additional state-specific classes such as source of income, gender identity, and military status
- Lawfully handle applications from tenants using Section 8 and other government subsidies; avoid discriminatory steering or discouragement
- Understand that Section 8 voucher holders have the same legal protections under Fair Housing laws
- Prohibit policies or statements that discourage or refuse applicants based on voucher status
- Ensure advertising and communication are inclusive of tenants with housing assistance
- Train staff to recognize and prevent implicit bias in rental decisions related to subsidies
- Document all interactions and decisions consistently to demonstrate non-discrimination
- Address the presence of children and ensure compliance with lead paint disclosure requirements under both state and federal law
- Consider 3rd party screening companies.
- Obtain and document written authorization prior to running credit checks; inform applicants of their rights under the Fair Credit Reporting Act (FCRA)
- Know when and how criminal background checks may be used in tenant screening; understand HUD guidance and avoid blanket bans that may result in discriminatory impact
- Maintain applicant privacy by securely storing and disposing of personal data, including social security numbers and credit reports
- Encourage, but do not require, tenants to obtain renters insurance; clarify what it covers and how it benefits both parties
- Understand that improper or inconsistent screening practices may be cited in Massachusetts Commission Against Discrimination (MCAD) investigations or lawsuits
- B. Environmental and Safety Requirements
- Lead paint inspection, tenant notification, and compliance obligations
- Explanation of 30-day window to de-lead with children under six
- Mass Lead Safe Home website
- State and local financial aid for de-leading efforts
V. Condition and Delivery of Premises
Objective: Ensure landlords understand the legal expectations related to the condition and preparation of rental units.
- A. Move-in readiness
- Inspection checklist for cleanliness, damage, safety, appliances
- Statement of Condition and how to properly complete and serve it
- Board of Health Inspection/building Department/Appropriate Municipal Authority
- B. Abandoned Property
- Legal duty to inventory and return abandoned items
- Use of photos, inventory lists, and witness statements
- C. Dealing with hold-over tenants
- Required notices and enforcement options
- Coordination with municipal health/building inspectors for habitability violations
VI. Warranty of Habitability and State Sanitary Code
Objective: Identify the landlord's obligations regarding safe and habitable housing.
- A. Basic habitability standards
- Heat (October–May), hot water, plumbing, structural integrity
- If tenant is responsible for utilities, it must be in writing
- B. State Sanitary Code (105 CMR 410)
- Determines maximum occupancy
- Inspection standards and violation consequences
- C. Local Ordinances
- Municipal requirements that supplement the state code (e.g., trash pickup, parking)
- D. Right to quiet enjoyment and safety
- Responsibilities for locks, lighting, handrails, snow/ice removal, pest control
- E. Safety and security Issues a. railings, lighting, security features, snow removal, steps
VII. Vacation and Short-Term Rentals
Objective: Distinguish between standard rentals and short-term exemptions.
- A. Vacation rentals under 100 days
- Generally exempt from M.G.L. c. 186, § 15B
- Lease protections do not apply to vacation/recreational rentals
- B. Lead paint exemptions under 31 days
- Unit must be free of chipping or peeling paint
- Written short-term vacation rental exemption form must be provided
VIII. Fair Housing, Anti-Discrimination & Consumer Protection
Objective: Reinforce understanding of agents' obligations under Fair Housing and consumer protection laws.
- A. Protected Classes (Federal and State)
- Race, color, religion, sex, disability, familial status, national origin, age, Disability/handicap, children, source of income (public assistance), military status, marital status, gender identity, sexual orientation, genetic information, hairstyles (Crown Act)
- B. Public accommodation obligations
- Licensees are subject to MCAD enforcement
- C. M.G.L. c. 93A
- Prohibits unfair/deceptive business practices, including false advertising and misrepresentation in rentals
IX. Recent Legal Updates (2024–2025)
Objective: Ensure licensees are current on new legislation impacting rental practice.
- A. Massachusetts Junk Fee (Effective September 2, 2025)
- Transparent Pricing
- Advertising Compliance
- Lease renewal & Rent Increases disclosed up front
- B. Broker Fee Law (Effective August 2025)
- Only one party (either landlord or tenant) may contract with a broker and that party pays the fee.
- Fee disclosure form updated accordingly
- B. Eviction Record Sealing Law (Effective May 2025)
- Eviction records sealed automatically after:
- 3 years (no-cause)
- 5 years (non-payment)
- 7 years (for-cause)
- Background check compliance and best practices
- Eviction records sealed automatically after:
- C. Mandatory Mediation Before Eviction
- Applies to non-payment and no-cause evictions
- Licensees should inform landlord-clients of mediation options
Suggested Handouts:
- Attorney Generals Guide to Landlord/Tenant Rights
- MA Consumer Guide to Landlord Rights and Responsibilities
- Broker fee disclosure form (updated for 2025 law)
- Sample application form
- Statement of condition
- Lease summary sheet
- "Get the Lead Out" guide
- Fair Housing/MCAD complaint process summary
- Summary of eviction sealing law
Authority:
- M.G.L. c. 112, §§ 87PP–87DDD1/2
- 254 CMR §§ 2.00–7.00
- M.G.L. c. 186, §§ 1–21 (residential rental)
- M.G.L. c. 111, §§ 189A–199B (lead)
- 105 CMR 410 (State Sanitary Code)
- M.G.L. c. 93A (Consumer Protection)
- 2025 Broker Fee Law
- 2025 Eviction Sealing Law
Duration: 2 hours
Intended Audience: Massachusetts licensed real estate brokers and salespersons
Instructional Method: Lecture, case review, discussion
| Last updated: | November 25, 2025 |
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