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Second broker demanding fee

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Second broker demanding fee

Postby email4robw » Thu Aug 17, 2017 7:57 pm

I found an apartment on Streeteasy and told my friend who is a licensed NY RE Salesperson. He offered to help with the apartment hunt as a friend. I told my friend what I could afford and that I only wanted "no fee" listings. The listing agent for my apartment was identified on Streeteasy and so I called him. He showed me a different apartment in the same building, confirmed it was no fee and offered a lease. When I went to see the apartment my friend went with me, met the listing broker and the owner of the building and only identified himself as my friend. The lease offered was (hypothetical) $100 / month and started in the middle of the month. I told my friend this and he said he would talk to the broker. My friend came back and said he negotiated a rent of $95 / month and a first-of-the-month start date. I signed the lease and gave the listing broker certified funds and moved in. Now my friend is demanding I pay him (the firm he works for) a commission of 6% of the annual rent. At no time did my friend ask me to sign anything or present any documentation of any kind (no disclosure, no commission agreement, nothing). I believe I should not have to pay the demanded commission to my friend, irrespective of GO 5-701 (10), as my friend acted deceptively, did not disclose his relationship, did not procure the lease for me, did not agree to or offer an set compensation, and started out by accepting my offer to give him a small "gratuity" if he helped out. We both understood "small gratuity" to mean something equal to a bottle of scotch. HELP. I need to know if I should fight or pay.
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Re: Second broker demanding fee

Postby TenantNet » Thu Aug 17, 2017 8:34 pm

We normally do not deal with broker situations and do not know the laws pertaining to brokers, especially GOL. So we can't give your the legal nuts and bolts about situations like this.

But ... is he licensed with NY State? Some aren't. Seems he isn't a real friend. If you have no agreement, I would not pay. It's that simple.

I would give him the bottle of scotch and if he wants anything else, tell him he's had too much to drink.
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Re: Second broker demanding fee

Postby BubbaJoe123 » Fri Aug 18, 2017 12:32 pm

email4robw wrote:I found an apartment on Streeteasy and told my friend who is a licensed NY RE Salesperson. He offered to help with the apartment hunt as a friend. I told my friend what I could afford and that I only wanted "no fee" listings. The listing agent for my apartment was identified on Streeteasy and so I called him. He showed me a different apartment in the same building, confirmed it was no fee and offered a lease. When I went to see the apartment my friend went with me, met the listing broker and the owner of the building and only identified himself as my friend. The lease offered was (hypothetical) $100 / month and started in the middle of the month. I told my friend this and he said he would talk to the broker. My friend came back and said he negotiated a rent of $95 / month and a first-of-the-month start date. I signed the lease and gave the listing broker certified funds and moved in. Now my friend is demanding I pay him (the firm he works for) a commission of 6% of the annual rent. At no time did my friend ask me to sign anything or present any documentation of any kind (no disclosure, no commission agreement, nothing). I believe I should not have to pay the demanded commission to my friend, irrespective of GO 5-701 (10), as my friend acted deceptively, did not disclose his relationship, did not procure the lease for me, did not agree to or offer an set compensation, and started out by accepting my offer to give him a small "gratuity" if he helped out. We both understood "small gratuity" to mean something equal to a bottle of scotch. HELP. I need to know if I should fight or pay.


1. This person isn't a friend. At least, he/she isn't any longer.
2. Unless you signed something with him, tell him to go pound sand. There might be an argument that he's entitled to a commission because, even without a written document, he acted as your broker, but without a written agreement, there's no basis for him to make a claim beyond the "small gratuity" you discussed.
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