NYC Broker Fee Ban Now In Effect

New York City's Fairness in Apartment Rental Expenses (FARE) Act has officially gone into effect, shifting broker fee responsibility from renters to landlords despite legal efforts by the Real Estate Board of New York (REBNY) to block it. A federal judge denied REBNY's request for a preliminary injunction and dismissed most of their constitutional claims, though a Contract Clause claim is still pending. The law prohibits landlords from passing broker fees onto tenants and requires them to pay commissions for brokers they hire. Proponents say the law will ease renters' financial burdens, while critics warn that landlords may raise rents or reduce listings in response. The judge held that landlords are better positioned than tenants to absorb broker costs by adjusting rents, and that policy disagreements belong in the legislative arena. New York now joins most major U.S. cities that require landlords to pay broker fees, leaving Boston as a notable exception.