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October 23.2025
2 Minutes Read

Navigating NYC's FARE Act: How to Address Illegal Broker Fees

Row of NYC brownstone buildings illustrating FARE Act.

Understanding Your Rights Under the FARE Act

As NYC renters navigate the bustling rental market, many are confused about the implications of the new Fairness in Apartment Rental Expenses (FARE) Act. One significant aspect of this law is that it shifts the responsibility for broker fees from tenants to landlords under specific conditions. If you find yourself paying a broker’s fee when you did not hire the broker's services, it's crucial to know your rights and how to reclaim those funds.

What to Do If You're Charged an Illegal Broker Fee

If you're asked to pay a broker’s fee despite not hiring them, you might be facing an illegal charge. Altagracia Pierre-Outerbridge, a tenant attorney, emphasizes the importance of a demand letter, which can often prompt brokers to refund the fee. Since violations of the FARE Act can incur penalties of $500 to $2,000, many brokers are incentivized to resolve such disputes swiftly to protect their licenses.

Transparency is Key: Know Who Hired the Broker

Before signing any agreements or paying fees, renters should ask brokers to clarify in writing who their client is. If the broker represents the landlord, the tenant is not responsible for the fee. This law aims to cultivate transparency in rental transactions and should empower renters to assert their rights confidently.

What to Watch For When Renting in NYC

The FARE Act is designed to alleviate the financial burden of moving, particularly for first-time renters or those relocating. However, tenants need to scrutinize listings and lease terms carefully. Many landlords may attempt to obscure fees under ambiguous terms. For instance, watch out for charges labeled “administrative fees” or any sudden costs that weren’t mentioned in initial discussions. A clearer view of these fees helps renters avoid unnecessary expenses.

A Shift Towards Fairer Housing

Passed by the New York City Council to address long-standing grievances over exorbitant move-in costs, the FARE Act signifies a positive step towards fairer housing practices. By ensuring landlords cover broker fees, the city aims to enhance access to housing while ensuring transparency in transactions. This law not only helps stabilize renters' finances but also sets a precedent for further reforms in other high-cost urban areas across the country.

If you’re currently seeking a rental in New York City, it's essential to educate yourself on the rights the FARE Act affords you. For further assistance or to report potential violations, consider reaching out to the Department of Consumer and Worker Protection.

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