Effective August 1, 2025, a new law enacted as part of the FY26 state budget prohibits landlords and brokers in Massachusetts from requiring tenants to pay broker fees. In other words, from now on the “broker fee” must be paid by the party who hired the broker.
Some folks may think this does not really impact residents in western Massachusetts or in our district. Over the weekend, while shopping at the Amherst Farmers Market, several residents came over to say hello and share their support for the new law and how they anticipate benefitting from it in the coming months.
For some, finding a home has required thousands of dollars in broker fees just to find an appropriate residence and sign a lease. This change in the law will help ease the affordability crisis facing renters statewide. The Executive Office of Housing and Livable Communities has posted frequently asked questions (FAQ) on the new law, available here.
Here are some details related to the new law:
- Only the party who hires the broker or salesperson pays the fee, not tenants who didn’t engage or contract with that broker. If the landlord contracts the broker, the landlord pays, not the tenant. And tenants cannot be required to pay any broker‑type fee in that scenario.
- Tenants can still hire their own broker. In that case, the tenant does pay the fee, but only if a written agreement exists and the broker works exclusively on their behalf.
- The new law applies only to residential leases (it does not affect commercial leases or property purchases).
- This is not retroactive: tenants who signed leases before August 1 may still owe broker fees under prior arrangements even if the landlord or their broker was involved.
What if landlords or brokers are not following the new law?
If you are experiencing a violation of this new law the Attorney General’s Consumer Advocacy and Response Division should be notified. They can be reached at (617) 727-8400 or online here.