May 18, 2025
The real estate game in New York City is about to change — big time.
Starting June 11, a new law known as the Fairness in Apartment Rental Expenses (FARE) Act will go into effect, making it illegal for landlords and brokers to charge a tenant for broker services unless that tenant explicitly hired them.
So what does this mean for us in the real estate business? Simply put: no more passing the buck. If a landlord or agent brings in a broker to fill a unit, they’re responsible for the commission — not the tenant.
Failure to comply could result in steep penalties, starting at $750 for the first offense and climbing to $2,000 for repeated violations.
This is more than just a policy update. It’s a cultural shift in how rentals are done in NYC, where broker fees have traditionally added thousands to a tenant's move-in costs — often without them ever choosing or agreeing to work with that broker in the first place.
Platforms like StreetEasy and RentHop have already made it easier for renters to find apartments without an agent.
Now, with financial backing and legal teeth behind this new law, the city is signaling it wants to cut out unnecessary fees and increase transparency.
Councilmember Chi Ossé, who sponsored the bill, made it clear: “The fines imposed by the law are reasonable and can be easily avoided by never charging a tenant for a broker they did not hire.”
Of course, this isn’t going down without a fight. The Real Estate Board of New York (REBNY) and multiple brokerages have filed a lawsuit to block the law, arguing that it oversteps legal boundaries.
Sound familiar? A similar 2020 ban was struck down after pushback. But this time, with public support growing and even Governor Kathy Hochul backing the fee ban, the momentum feels different.
As brokers, we’ll need to adapt — whether that means shifting toward exclusive tenant representation or focusing more on listings where the landlord agrees to cover commissions.
Transparency is key here. Every listing should clearly disclose fees (or the lack thereof) and provide an itemized breakdown.
Because if we don’t, we risk fines — or worse, losing the trust of clients.
And trust me, if this law holds, renters will be paying attention.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
