{"id":12230,"date":"2020-02-12T16:10:00","date_gmt":"2020-02-12T21:10:00","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=12230"},"modified":"2023-07-28T16:14:30","modified_gmt":"2023-07-28T20:14:30","slug":"new-yorks-new-broker-fee-regulations","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/new-yorks-new-broker-fee-regulations\/","title":{"rendered":"New Broker Fee Laws in NYC – 2020"},"content":{"rendered":"

UPDATE August 10, 2020 – <\/strong>In light of the legal battle currently being fought over the legality of the new broker fee rules, a NY State Court has temporarily barred the new broker fee laws from going into effect.\u00a0 The real estate industry and state regulators have postponed the court date to adjudicate the legality of the new broker fee rules until September 2020, at the earliest.\u00a0 As of this update, and until the NY State Court comes down with a final decision, both tenant’s and landlord’s agents can collect broker fees in New York State.<\/p>\r\n

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On January 31, 2020, the New York Department of State issued guidance<\/a> holding that a “landlord’s agent” may no longer collect a broker fee from a tenant. Below is an excerpt of the guidance itself:<\/p>\r\n\r\n

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Despite click-bait headlines proclaiming “No More Broker Fees<\/a>,” media reports overlook that the guidance only applies to landlord’s agents. An agent who represents a tenant (rather than the landlord) can still collect a broker fee from that tenant.<\/p>\r\n\r\n\r\n\r\n

It can be difficult for renters to tell whether they are working with a “landlord’s agent” or a “tenant’s agent.”<\/p>\r\n\r\n\r\n\r\n

A landlord’s has an exclusivity agreement with the landlord; they are the only agent permitted to market and rent the apartment. Such an agent would almost certainly be prohibited from collecting a fee from renter under the new guidance.<\/p>\r\n

Learn more:\r\n