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In Massachusetts the amount a broker may charge for commission is:

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Question & Answer

Review the question and all answer choices

A

6.00%

A commission rate of exactly 6.00% is not mandated by any Massachusetts law or regulation — stating a fixed rate as if it were legally required would constitute illegal price-fixing if it were an industry standard enforced by brokers collectively, and it is simply factually incorrect as a legal requirement.

B

Up to 6%

There is no Massachusetts law capping commissions at 6% — 'up to 6%' implies a legal maximum that does not exist, and a broker and client could lawfully agree to a commission of 7%, 3%, or any other amount they choose.

C

Up to 7%

Similarly, 'up to 7%' implies a statutory ceiling that has never existed in Massachusetts real estate law — this option is a distractor that sounds plausible but has no basis in any Massachusetts General Law or Board of Registration regulation.

D

Negotiable in the listing contract

Correct Answer

Why is this correct?

Massachusetts law contains no statute that establishes a fixed, maximum, or minimum commission rate for real estate brokers — the commission is whatever percentage or flat fee the broker and client mutually agree to and memorialize in the listing contract. This is consistent with federal antitrust principles that prohibit trade associations like the National Association of REALTORS® from setting industry-wide standard rates. The listing agreement is the legally binding document that establishes the commission obligation, and its terms are entirely negotiable.

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