Illegal Apartments & Real Estate Agents

[wtlgditc]

About 7 months ago, my girlfriend and I rented an apartment found for us through a realtor in Nassau County, Long Island, New York. We rented month-to-month and strongly suspected at the time that it was an illegal* apartment. Since then, we've had some issues with our landlord centering around electric use (which was to be included with the rent, according to a rental agreement signed by us, the landlord, and the realtor) and have received a certified letter from our landlord indicating we are to vacate the premesis no later than September 30, 2004.

Since that time, we've heard rumor to the effect that realtors cannot rent illegal apartments. (Both my girlfriend and I have successfully completed courses in Real Estate Appraisal and though the topic was not actually covered, questions and comments throughout the course have hinted at this). Further, while I cannot find the link at this time, I once (~4 months ago) saw a description of a New York State court decision which required the realtor to refund the fee paid in locating the apartment to the renters.

Recently, we learned as near definitely as possible that the apartment IS illegal. Further, we contacted the realtor and they say they didn't know it was illegal and therefore, they are not refunding our money or locating another apartment for us. Yet information on the home is FREELY AVAILABLE at the county web site we reside in, indicating it is a one family year round residence. Therefore, a simply, quick check on the web would have revealed this to the realtor.

My question is this:
Like with Real Estate Appraisal, are Realtors required to do a certain amount of due diligence to ensure the properties they are renting are, in fact, legal? We went to the county offices before we realized it was online and both gave us the same information. Should the realtors then have not gotten a signed contract from the owners renting the apartment indicating it was a legal apartment. Thus, in the end putting the liability back on the owner? And making it easy for the realtor to deflect our accusations by simply showing a signed document by the owners asserting it was a multifamily dwelling? Ok, that's how I might have tried to do things, but does my argument have any merit? Are we entitled to a refund of the finders fee, plus any additional damages (such as moving expenses a second time, lost wages from having to move again, etc)?

Thanks,

*illegal apartment as defined by http://www.co.nassau.ny.us/assessor/pressrel/05-25-04.html

[Cranky Tenant]

This seem s like the kind of question that's best answered by the NYS Attorney General's office which oversees Real Estate Agents.
http://www.oag.state.ny.us/home.html

There was an interesting story in the news last week that Nassau County will begin charging commercial property tax rates to homeowners who have illegal apartments. The idea was to curb the number of illegal apartments in Nassau rather than actually collect the money. You might want to consider looking into this aspect as well.

http://www.newsday.com/mynews/ny-lihous063920381aug06,0,7391552.story

<small>[ August 14, 2004, 07:04 AM: Message edited by: Cranky Tenant ]</small>

[Cranky Tenant]

Oops! Same news story.

This probably doesn't carry any legal weight but, I don't understand why anyone would pay a broker's fee for a month-to-month agreement. I'd imagine if someone was paying a broker as much as 15% of the first year's rent they would expect a one year lease in exchange for that fee.