Nyc Fare Act Broker Fees

NYC FARE Act & Broker Fees ## Why This Matters on the Exam The NYC FARE Act is one of the most recent and significant changes to NYC rental practice, and examiners love testing newly enacted laws. Expect at least one direct question on who pays the broker fee, the effective date, the penalty, and the enforcing agency. --- ## Overview: The Problem the FARE Act Solved In NYC's rental market, it was historically common for a landlord to hire a broker to find a tenant — but then require the *tenant* to pay that broker's fee. This fee often amounted to one month's rent or more (sometimes 12–15% of annual rent), creating a significant upfront barrier for renters. The FARE Act (Fairness in Apartment Rentals Act) directly addresses this imbalance. --- ## Key Concepts ### What the FARE Act Does Effective Date: June 11, 2025 The FARE Act establishes a simple principle: the party who hires the broker pays the broker's fee. - If a landlord engages a broker to list and market a rental unit, the landlord must pay that broker's commission. - A tenant is no longer legally responsible for the fee of a broker they did not personally hire. - If a tenant independently hires their own broker to help them find an apartment, the tenant remains responsible for paying *that* broker's fee. ### Enforcing Agency and Penalty | Detail | Specifics | |---|---| | Enforcing Agency | NYC Department of Consumer and Worker Protection (DCWP) | | Violation Fine | $2,000 per violation | | Jurisdiction | New York City only | > Memory tip: DCWP — the same agency that enforces many consumer-protection…