Charge an illegal broker fee? That could soon be a $750 fine
Landlords and brokers who charge tenants illegal broker fees could face fines starting at $750 once a landmark law restricting the payments takes effect in June, according to documents published by the city this week.The city’s Department of Consumer and Worker Protection is taking steps to implement the Fairness in Apartment Rental Expenses Act, which passed the City Council in November and is scheduled to take effect around June 14 unless the Real Estate Board of New York prevails in its attempt to block it in court. The law requires whoever hires a broker — typically a landlord — to pay any fees the broker charges for listing an apartment, upending a system that has left tenants on the hook for costs that often approach 15% of a year’s rent.On Monday the department published its proposed penalties for violations of the law. If a tenant is charged a fee for an apartment where the broker is representing the landlord, both the broker and the landlord would face fines starting at $750 for a first violation. That number would escalate to $1,800 for second offenses, and $2,000 for third and all subsequent violations.
Landlords and brokers who charge tenants illegal broker fees could face fines starting at $750 once a landmark law restricting the payments takes effect in June, according to documents published by the city this week.The city’s Department of Consumer and Worker Protection is taking steps to implement the Fairness in Apartment Rental Expenses Act, which passed the City Council in November and is scheduled to take effect around June 14 unless the Real Estate Board of New York prevails in its attempt to block it in court. The law requires whoever hires a broker — typically a landlord — to pay any fees the broker charges for listing an apartment, upending a system that has left tenants on the hook for costs that often approach 15% of a year’s rent.On Monday the department published its proposed penalties for violations of the law. If a tenant is charged a fee for an apartment where the broker is representing the landlord, both the broker and the landlord would face fines starting at $750 for a first violation. That number would escalate to $1,800 for second offenses, and $2,000 for third and all subsequent violations.
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