broker works for management

[ShellyB]

I found out that the broker that showed me my recent apartment works directly for the management company of the building. I feel completely cheated because the broker's fee was enormous. Is this legal? I'm very curious and would like to know if this is something other people have dealt with. In advance, thank you for any input.

[Cranky Tenant]

First you should do some research to find out if he's a icensed broker. Only brokers licensed by the state are entitled to collect broker's fees.

Even if he is licensed, he's not allowed to collect a fee for an apartment he owns or manages.

[ShellyB]

He is in fact licensed, so that part threw me off. The broker (ahem) works directly for the management company, but I don't think he owns it. They have a few people who work there and he deals with problems with the building and what not (found out once I had a structural problem). Is there anything I can do or should I just drink a beer and not think about it any more?

[digerati]

It's long winded and disorienting in places, but below is the provision in the Rent Stabilization Code that prohibits your broker's activities (that is, if the apartment is rent stabilized).

§ 2525.1 General prohibitions

It shall be unlawful, regardless of any contract, lease or other obligation heretofore or hereafter entered into, for any person to demand or receive any rent for any housing accommodation in excess of the legal regulated rent, or otherwise to do or omit to do any act, in violation of any regulation, order or requirement under the RSL or this Code, or to offer, solicit, attempt or agree to do any of the foregoing. In addition to the definition contained in section 2520.6(c) of this Title, the term rent, as herein before defined, shall also include the payment by a tenant of a fee or rental commission to an owner or to any person or real estate broker where such person or real estate broker is an agent or employee of the owner employed by the owner in connection with the operation or management of the building in which the housing accommodation is located, or where the owner or his or her employee refers the tenant to such person or such real estate broker employed by the owner in connection with the operation or management of the building, for the purpose of renting the housing accommodation, or where there is common ownership, directly or indirectly, or a financial interest between the owner and such person or real estate broker.

http://www.tenant.net/Rent_Laws/RSC/rsc2525.html

Good luck.

[Cranky Tenant]

just for starters, there are two kinds of Rea Estate licenses. A salesperson is required to be supervised by a fully licensed broker or he's in violation of NYS law.
Real Estate Broker FAQ

You can also file a complaint online or by phone with
the New York Department of State

DHCR has form RA-89 that you can use to file for specific overcharge complaints, such as an illegal brokers fee.... or you coud get a lawyer.

[ShellyB]

Thanks to the both of you for your helpful replies. This site is an amazing resource & I'm incredibly grateful.

To reply, yes, the broker is indeed a licensed broker. I started to look closer into this and a neighbor started talking about how the checks we write our rents to is a different company name as the company we have to call for any problems with the apartment. Both have same addresses, but answer to the broker's company name when called. It seems that everyone in my building has come to this realization about the broker/management ties, but has done nothing about it.

Is this something that would be better to approach to a lawyer or the gov't with more people on the complaint. Would we have to worry about retaliation?