What is the legally established “standard” real estate commission rate in Massachusetts?

The correct answer is D. Massachusetts does not establish a mandatory or standard brokerage commission percentage.

Compensation is negotiated between the brokerage and client based on the services being provided and the applicable agreement. Massachusetts Board buyer-agency curriculum expressly states that compensation is always negotiable and that there is no standard compensation.

A brokerage is free to offer percentage-based compensation, a flat fee, retainer, fee-for-service arrangement, or another lawful structure. Competing brokerage firms must not agree among themselves to establish uniform prices because doing so can implicate federal and state antitrust laws.

Therefore, candidates should never treat 5% or 6% as a legally required commission simply because such percentages frequently appear in arithmetic practice questions.

Study Guide Reference: Agency — Brokerage Compensation and Negotiability.