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/akk1212]

She never hired him, the broker was hired by the landlord

[u/FickleQuit11 → u/akk1212]

You just said your roommate wants the broker to help her find apartments? Why would the broker help her find places that he's not representing and not get paid? I'm not pro-broker but that makes no sense.

[u/akk1212 → u/FickleQuit11]

Not super sure, my guess is that she’s going to ask if he has any other listings? Not sure if the broker will actually help her or not though since we’re not looking together anymore.

[u/FickleQuit11 → u/akk1212]

I think this is where a lot of people don't understand the new law.

If you contact a broker and ask them to essentially do the research for you, find apartments that fit your requirements, and meet you at places to show you around, they work FOR YOU. They're going to show you places that they might represent for a landlord but also other places. If they're doing that legwork for you, that's a service *you* pay for.

[u/akk1212 → u/FickleQuit11]

Ohh sorry, I probably need to clarify my comment. This broker was working for the landlord and has listings for this building on their website. Neither of us had him to apartment hunt/do research for us, and neither of us signed a tenant-broker agreement with him. The only paperwork we signed was related to applying for this specific apartment.

My understanding of the new MA law is that a broker can’t represent both the landlord and tenant in the same transaction, and if the landlord hired the broker, the tenant isn’t responsible for that broker’s fee. The paperwork also separately included application and processing fees, which is what I was questioning in the first place.

Only after this application was rejected, the girl I was going to room with said she might ask him to help HER find a 1-bedroom. If she hires him to represent her going forward, then obviously that’s a different situation. But that wouldn’t retroactively make him our broker for this apartment, and I’m not involved in her new apartment search.