Posted on: November 12, 2024 04:08 PM

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Real estate agents and brokers got the news on commissions

Coming soon to NYC - unaffordable!

The bill that has been controversial in NYC called the FARE Act changing commission from tenants to landlords is expected to pass tomorrow. The NYC Council will have the majority for this bill.

The only question remains is whether the NYC Mayor will sign it to make it law. The Mayor's Office has not responded to this bill.

The Fairness in Apartment Rentals Act has 33 members of the City Council in favor, that's the majority. The Speaker is not one of them.

The bill simply requires that the hiring party in a rental transaction, whether landlord or tenant, pays the broker fee.

The bill also forces landlords to pay the fine if making the tenant pay the broker fee. Fine starts at $1,000.

Now read this. Landlords can increase the rent except for rent stabilized units to make the commission covered from the tenant.

So if a single bedroom apartment is $2,000, the landlord can say it's now $2,165 to cover the broker fee and tenants have no choice but take it or leave it.

This maybe the start to a residual earning for real estate agents and brokers.