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H 1532

An Act establishing a commission to study the impact of shifting residential broker fees from tenants to landlords

194th Legislature (2025-2026) Introduced by Kim Ferguson and 4 co-sponsors

Creates a commission to study shifting residential broker fees from tenants to landlords, assessing effects on affordability, housing availability, and market practices.

Accompanied a study order, see H5352 (under House Rule 27)
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Bill Summary · H 1532

Summary: H.1532 – An Act establishing a commission to study the impact of shifting residential broker fees from tenants to landlords

Overview

H.1532, introduced February 27, 2025, proposes the creation of a special commission to study the potential economic and social effects of shifting responsibility for residential real estate broker fees from tenants to landlords in Massachusetts. The bill directs the commission to examine a broad set of impacts and to provide findings and policy recommendations within 12 months of the act’s effective date.

Purpose and Intent

  • To evaluate the potential consequences of requiring landlords to pay residential broker fees that tenants typically pay.
  • To assess effects on the rental housing market (affordability, availability, stability) and on brokerage practices.
  • To compare Massachusetts with jurisdictions that have adopted similar fee-shifting policies.
  • To identify legal, regulatory, or practical challenges that could arise from such a shift.

Key Provisions

  • Section 1: Establishes a special commission to study and report on:
    1) Economic burden on landlords and tenants from shifting broker fees,
    2) Impacts on the rental housing market (affordability, availability, stability),
    3) Impacts on real estate brokerage practices and fees,
    4) Comparisons with jurisdictions implementing similar policies,
    5) Anticipated legal, regulatory, or practical challenges.

  • Section 2: Commission composition

    • Chair: Secretary of Housing and Livable Communities (or designee).
    • Members:
    • 1 House member appointed by the Speaker,
    • 1 Senate member appointed by the President,
    • 1 House member appointed by the House Minority Leader,
    • 1 Senate member appointed by the Senate Minority Leader,
    • 2 members appointed by the Governor: one representing the Massachusetts Association of Realtors, and one representing a tenant advocacy organization,
    • 1 economist with housing policy expertise appointed by the Governor.

  • Section 3: Support and hearings

    • The Executive Office of Housing and Livable Communities provides technical and administrative support.
    • The commission must hold at least 3 public hearings in geographically diverse regions to solicit feedback from tenants, landlords, brokers, and other stakeholders.

  • Section 4: Reporting

    • The commission must file a final report with findings, recommendations, and any drafts of proposed legislation no later than 12 months after the act’s effective date, distributed to the clerks of the House and Senate and the relevant committees.

Who Would Be Affected

  • Tenants and prospective tenants (potential changes to who pays broker fees and overall housing costs).
  • Landlords/property owners (potential shift in upfront broker costs to pay).
  • Real estate brokers and brokerage firms (fee structures, practices, and market dynamics).
  • Tenant advocacy organizations and housing policy stakeholders.
  • Policymakers and regulators evaluating housing market interventions.

Procedural and Timeline Aspects

  • Introduced: February 27, 2025.
  • Referred to: House Committee on Housing (February 27, 2025).
  • Status: Hearing scheduled for November 19, 2025, from 11:00 AM–5:00 PM in Gardner Auditorium.
  • Reporting deadline: No later than 12 months after the act’s effective date.
  • Related action: Senate concurrence noted in the legislative actions; related bill HD 3685 is referenced as the replacing measure.

Potential Impact (high-level)

The bill would establish a framework to assess whether shifting broker fees from tenants to landlords could affect affordability, housing stability, and market dynamics. By including diverse stakeholders and requiring public hearings, it aims to inform balanced policy decisions with transparent data and legislative drafting considerations.

Compiled from official sources — confirm details with the bill’s official record.

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