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Re: Sublet and Broker Fee

Posted by Stacy on October 02, 2001 at 15:37:21:

In Reply to: Sublet and Broker Fee posted by trent on October 01, 2001 at 17:43:20:

The broker's fee charge is 100% illegal. It's called key money, and there's a fair bit about it here on the boards. A managing agent or a landlord cannot collect a broker's fee; neither can a broker if you found the apartment on your own.

If you're willing to confront these jerks, try printing out the relevant statutes, showing them copies, and telling them that if they don't rent you the apartment without the illegal fee you'll report them to the state attorney general's office (which is in charge of licensing brokers).

I'm not sure about rights if you just stayed. My guess would be that since you have no lease in your name, you have no legal claim on the place and could be kicked out pretty quickly.

Also, while you're at it, you might as well go to DHCR and get a copy of the apartment's rent history and make sure all is kosher with the rent/increase they're charging.
Good luck.
: Here is my situation. I am subletting from a tenant whose lease runs out the end of this month. Apparently the sublet is illegal because she did not inform the mananagment company becase when she brought the subject up before they said that the subletter would have to pay an increased rent. Anyway, I contacted the management company to see if i can sign a new lease. they responsed by saying the current tenant is in default of their lease and that I can apply for the apartment but must pay the increased rent(no problem with that) but also the 15% brokers fee. they also have a brokers license.

: First is the this legal to charge the brokers fee even if they do nothing. i am in the apartment already albeit it is an illegal sublet. they will not budge on the fee.

: Second what are my rights if i just stay and continue to pay rent with the increase. I am tempted to just send the management company a check for the increased rent and see if they cash it to accept me as a tenant. Am i afforded the same eviction rights and procedures even if i am not a legal sublet?

: please respond!! I am due to be kicked out this month. it is a rent stabilized apartment on the Upper west side.

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