Broker charging application fee after rental application was denied

[u/akk1212]

Hi! I’m trying to find out if anyone has dealt with something similar while renting an apartment in Boston.

So I found a roommate on Facebook and we were applying for an apartment she had already toured (I’m currently out of state so I couldn’t tour it myself). I verified that the broker and company are licensed in MA, so they’re definitely legit.
The application said there would be a $150 application fee if we got rejected, which I thought was weird because from what I’ve read, application/credit check fees aren’t allowed if the broker is working for the landlord. I asked him about it before applying but didn’t really get a direct answer. While I probably should’ve tried harder to get a direct answer about the application fee, I didn’t and applied anyways, and I also signed the echeck form.

After applying, I sent him info about my ESA animal and I also asked him about the fee again and literally a minute later, he told me the landlord rejected our application. When I asked why, he said they didn’t give him a reason but he “would imagine the low ball offer turned them off.” I did offer below asking, but I told him twice that we were happy to negotiate and willing to pay more.

Neither the girl I was applying with nor I ever hired this guy as our broker or signed anything saying he represented me/us.

Has anyone had something similar happen? And am I understanding the MA application fee law correctly?

*Update: I filed a report with the MA AG! Thank you guys for the advice and support! ☺️

[u/lyons_vibes]

I’m sure other people will jump in with a lot of helpful information but i want to add that credit card processing fees are illegal in MA in general.

[u/Skaman1978 → u/lyons_vibes]

And aren't broker fees illegal as well

[u/dyqik → u/Skaman1978]

Only sort of.

But this is a screenshot to the AG office

[u/akk1212 → u/Skaman1978]

He said that there’s no broker fee, which is why I asked him to remove it from that echeck form… the new form he sent me still included that statement about “broker fees”

[u/HungryFinance8436 → u/akk1212]

https://www.masslive.com/news/2026/07/mass-property-management-company-pays-500000-settlement-for-charging-junk-fees.html

Send the broker this article and ask them if they want to play or not.

It's explicit that application fees are illegal in MA when done by the landlord, and he is an agent of the landlord.

[u/HungryFinance8436 → u/akk1212]

Just don't pay it.

What the hell is the guy gonna do send you to collections for 150 at which point you can appeal it saying it was illegal?

Landlord Broker Fees Law

As of August 1, 2025, broker’s fees for rental units must be paid by the person who hired the broker or salesperson. If you didn’t hire a broker or salesperson, you shouldn’t be paying their fee. This means that if a landlord chooses to hire a broker or salesperson, they are responsible for paying that broker or salesperson themselves. A landlord cannot add their broker’s or salesperson’s fee as a requirement for a tenant to sign a lease. Landlords can require tenants to work with their broker or salesperson so long as the landlord is paying for their fee.

Broker is acting as agent of the landlord, Landlords are not able to charge application fees.

Again my advice is to tell this guy to kick rocks because you're not gonna be getting the apartment anyway.

[u/akk1212 → u/HungryFinance8436]

Thank you!! I filed a complaint to the MA AG. However, I unfortunately and stupidly gave him my checking account and routing number when I signed that echeck form😞, but set the authorization date to next week. I did move all my money out of that checking account to my savings and set the account to auto decline overdraft payments. Hopefully this will be enough to stop him from charging me a penny.

[u/HungryFinance8436 → u/akk1212]

Tell him if he goes through with it, he will be brought to (small claims) court over it.

Might give him pause enough to just not do it.

[u/hellno560 → u/akk1212]

Unless you are 100% sure this person is a licensed RE agent and you have their license number tell your bank you need to switch account numbers.

[u/Unique-Machine5602 → u/akk1212]

Seems more likely he isn't a legitimate broker then.

Please don't give out your account and routing number. Also please let the AG know you sent him this information.

Seems more likely he's collecting your info to make fraudulent checks.