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Posted by TenantNet on August 10, 1997 at 00:21:41:

In Reply to: Laws Governing Brokers posted by Daniel McArdle on August 10, 1997 at 00:00:45:

: Dear Tenant Net, Are there any laws regulating the ammount of fee a Broker can charge? I Spoke to one today and the apartment is in an ideal location, just steps off CPW and is stabilized at $999. per month. I expected to pay the usual fee of 15% the other brokers charge, but this guy said his fee was way above that and refused to specify, saying it would be negotaited at the time of rental. I almost fell for it, so I thought I would check first. It is obvious he is selling to the highest bidder which I think is detestable! Do you have any suggestions? I would appreciate anything. Thank You. P.S. He represents a well-known Real Estate company.

From the Tenant FAQ. Also see the General Tenants Rights section
on the web site

REAL ESTATE BROKERS

Consumers may retain a real estate broker to find a suitable
apartment. The state licenses real estate brokers and
salespersons. Brokers charge a commission for their services
which is usually a stated percentage of the first year's rent.
The amount of the commission is not set by law and should be
negotiated between the parties. The broker must assist you in
finding and obtaining an apartment before he may charge you a
commission. The fee should not be paid until you are offered a
lease signed by the landlord. Complaints against real estate
brokers should be brought to the attention of the New York
Department of State. (Real Property Law, Article 12-A)

APARTMENT REFERRAL AGENCIES

Businesses that for advance fees provide information about the
location and availability of rental housing must be licensed by
the state. The fees charged by these firms may not exceed one
month's rent. When the information the firms provide does not
result in a rental, the entire pre-paid fee, less $15.00, must be
returned to the tenant. Criminal prosecutions for violations of
this law may be brought by the Attorney General. (Real Property
Law, Article 12-C)

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Comments:
: : Dear Tenant Net,  Are there any laws regulating the ammount of fee a Broker can charge?  I Spoke to one today and the apartment is in an ideal location, just steps off CPW and is stabilized at $999.  per month.  I expected to pay the usual fee of 15% the other brokers charge, but this guy said his fee was way above that and refused to specify, saying it would be negotaited at the time of rental.  I almost fell for it, so I thought I would check first.  It is obvious he is selling to the highest bidder which I think is detestable!  Do you have any suggestions?  I would appreciate anything.        Thank You.                                                P.S.  He represents a well-known Real Estate company.  

: From the Tenant FAQ. Also see the General Tenants Rights section
: on the web site

: REAL ESTATE BROKERS

: Consumers may retain a real estate broker to find a suitable
: apartment. The state licenses real estate brokers and
: salespersons. Brokers charge a commission for their services
: which is usually a stated percentage of the first year's rent.
: The amount of the commission is not set by law and should be
: negotiated between the parties. The broker must assist you in
: finding and obtaining an apartment before he may charge you a
: commission. The fee should not be paid until you are offered a
: lease signed by the landlord. Complaints against real estate
: brokers should be brought to the attention of the New York
: Department of State. (Real Property Law, Article 12-A)

: 
: APARTMENT REFERRAL AGENCIES

: Businesses that for advance fees provide information about the
: location and availability of rental housing must be licensed by
: the state. The fees charged by these firms may not exceed one
: month's rent. When the information the firms provide does not
: result in a rental, the entire pre-paid fee, less $15.00, must be
: returned to the tenant. Criminal prosecutions for violations of
: this law may be brought by the Attorney General. (Real Property
: Law, Article 12-C)



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