Press Release  AG's Office Releases Advisory On New Law Banning Forced Renter-Paid Broker Fees

BOSTON — Today, on the effective date of a new state law prohibiting real estate brokers and salespersons retained by landlords from charging broker fees to prospective tenants, the Attorney General’s Office (AGO) has released an advisory on the new law, highlighting obligations of landlords, brokers, and salespersons under this new law and existing law, and underscoring rights and resources for consumers. 

Beginning today, August 1, the new law explicitly prohibits real estate professionals from charging tenants “broker fees” for services that are primarily provided to a landlord. Hence, under updated state law, brokers and salespersons are prohibited from requiring tenants to pay for services provided to their landlord. Under existing law, landlords and property managers are still prohibited from charging any amount at or prior to the start of a tenancy other than the first month’s rent, last month’s rent, a security deposit, and the actual cost of changing a lock for the tenants. Tenants may still choose to hire and pay for a broker who will represent their interests in securing rental housing.

The AGO’s advisory clarifies obligations for landlords, brokers, and real estate professionals under the new law and highlights rights and resources for consumers.

The AGO’s advisory on the new law may be viewed in its entirety here.

This advisory is AG Campbell’s latest effort to protect renters from unnecessary costs. Earlier this year, the AGO submitted an amicus brief in the Supreme Judicial Court (SJC) to protect Massachusetts renters from illegal lease terms and security deposit withholdings. Today, the SJC issued a favorable decision in that case, finding that renters should not be financially responsible for the cost of routine painting, carpet cleaning, or professional cleaning services upon move out. 

Consumers who believe that a broker, landlord or property manager has violated the law may file a complaint with the AGO online. For more information, consumers may also call the AGO at (617) 727-8400.

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