An Act requiring that broker fees in the city of Somerville be paid by the party who solicits a licensed broker

194th Legislature (2025-2026) Introduced by Christine Barber and 4 co-sponsors

Bill H 3922 ensures that the party hiring a broker in Somerville pays the broker fees, promoting fairness and transparency for tenants and landlords in real estate transactions.

Accompanied a study order, see H5337 (under House Rule 27)

Purpose and Intent

Bill H 3922 aims to clarify the responsibility for paying broker fees in the city of Somerville, Massachusetts. The legislation mandates that the party who solicits the services of a licensed broker is responsible for paying any associated fees. This change is intended to provide greater transparency and fairness in real estate transactions, particularly for tenants and landlords.

Key Provisions

The bill includes the following significant provisions:

Broker Fee Responsibility:

The bill stipulates that any fees for real estate brokerage services must be paid by the party that originally engages the broker. This means:
If a tenant hires a broker to find rental property, the tenant will pay the broker's fee.
Conversely, if a landlord hires a broker to find tenants, the landlord will be responsible for the broker's fee.

Brokerage Activities:

Licensed brokers in Somerville are permitted to:
Contract with prospective tenants to find rental properties.
Present offers to landlords and negotiate on behalf of tenants.
Contract with landlords to find suitable tenants for their properties.

Affected Parties

The bill primarily affects:
- Tenants: Individuals seeking rental properties will have clarity on their financial obligations regarding broker fees.
- Landlords: Property owners looking to lease their properties will also have clear guidelines on who is responsible for paying broker fees.
- Licensed Brokers: Real estate professionals will need to adjust their practices to comply with the new fee structure.

Procedural Aspects

Introduced: The bill was introduced on March 20, 2025.

Hearing Scheduled: A public hearing is set for November 19, 2025, from 11:00 AM to 5:00 PM in Gardner Auditorium, allowing stakeholders to voice their opinions and concerns regarding the bill.

Legislative Progress:

The bill was referred to the committee on Housing shortly after its introduction.
The Senate concurred with the bill on March 27, 2025.

Conclusion

Bill H 3922 seeks to establish a clear framework for broker fee responsibilities in Somerville, promoting fairness in real estate transactions. By ensuring that the party who solicits the broker pays the fees, the bill aims to protect both tenants and landlords while streamlining the brokerage process. The upcoming hearing will provide an opportunity for public input before any further legislative action is taken.

Bill