NYC Brokers Sue to Block Tenant Fee Ban Set for June 11
Legal Battle Over NYC's FARE Act In a dramatic clash that could reshape New York City's rental market, the Real Estate Board of New York (REBNY) and several brokerages have filed lawsuits. They aim to halt the Fairness in Apartment Rental Expenses (FARE) Act, slated for implementation on June 11, 2025. This legislation seeks to curb the practice of landlords passing broker fees onto tenants. It has sparked significant debate over its implications and tenant rights advancements. The FARE Act intends to alleviate financial burdens imposed by broker fees, which often account for 15% of annual rent. By prohibiting these costs from being passed to tenants, it aims to reduce upfront financial barriers, sometimes exceeding $13,000. Proponents argue that this legislative shift aligns with enhancing tenant rights. It provides relief in a city where affordability is a persistent challenge. However, real estate entities and brokerages worry transferring these fees to landlords could backf...