Bill > H4145

This bill modifies real estate brokerage practices specifically in the city of Cambridge, Massachusetts, by changing who is responsible for paying broker fees. Currently, broker fees are often paid by tenants, but this legislation mandates that the broker fee can only be paid by the party who originally hired the broker - either the landlord or the tenant who initially contracted with the licensed real estate broker or salesperson. This means that if a tenant hires a broker to help them find a rental property, the tenant would be responsible for the broker's fee, and if a landlord hires a broker to find a tenant, the landlord would pay the fee. The bill allows licensed real estate brokers (registered under sections 87PP to 87DDD1/2 of Massachusetts General Laws chapter 112) to continue their current practices of either helping tenants find properties or helping landlords find tenants, but clarifies the payment responsibility. The legislation takes effect immediately upon passage and applies only within Cambridge's city limits, potentially providing more transparency and predictability in rental transaction costs for both tenants and landlords.

Housing and Urban Affairs

https://malegislature.gov/Bills/194/H4145