{"id":137961,"date":"2025-04-03T14:19:19","date_gmt":"2025-04-03T14:19:19","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/"},"modified":"2025-04-03T14:19:19","modified_gmt":"2025-04-03T14:19:19","slug":"is-broker-fee-legal-in-nyc","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/","title":{"rendered":"Is broker fee legal in NYC?"},"content":{"rendered":"<p>Is broker fee legal in NYC?<\/p>\n<p>**No, as of March 2020, paying a broker fee is no longer legal for most renters in New York City.**<\/p>\n<p>For many years, one of the biggest frustrations for renters in NYC has been the hefty broker fees that accompany signing a lease. These fees, which could be as high as 15% of the annual rent, were a significant financial burden for tenants. However, thanks to recent changes in New York State law, renters can now breathe a sigh of relief.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#What_is_a_broker_fee\" title=\"What is a broker fee?\">What is a broker fee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#Why_were_broker_fees_so_controversial_in_NYC\" title=\"Why were broker fees so controversial in NYC?\">Why were broker fees so controversial in NYC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#What_prompted_the_change_in_the_law\" title=\"What prompted the change in the law?\">What prompted the change in the law?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#Who_does_the_new_law_apply_to\" title=\"Who does the new law apply to?\">Who does the new law apply to?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#How_does_the_law_affect_renters\" title=\"How does the law affect renters?\">How does the law affect renters?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#What_happens_if_a_landlord_or_broker_still_tries_to_charge_a_fee\" title=\"What happens if a landlord or broker still tries to charge a fee?\">What happens if a landlord or broker still tries to charge a fee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#Can_landlords_charge_other_fees\" title=\"Can landlords charge other fees?\">Can landlords charge other fees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#What_should_renters_do_if_they_are_asked_to_pay_a_broker_fee\" title=\"What should renters do if they are asked to pay a broker fee?\">What should renters do if they are asked to pay a broker fee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#Will_this_change_make_renting_more_affordable_in_NYC\" title=\"Will this change make renting more affordable in NYC?\">Will this change make renting more affordable in NYC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#Can_renters_still_use_brokers_to_help_find_apartments\" title=\"Can renters still use brokers to help find apartments?\">Can renters still use brokers to help find apartments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#Are_there_any_exceptions_to_the_new_law\" title=\"Are there any exceptions to the new law?\">Are there any exceptions to the new law?<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_broker_fee\"><\/span>What is a broker fee?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nA broker fee is a fee charged by real estate brokers to facilitate the rental process.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_were_broker_fees_so_controversial_in_NYC\"><\/span>Why were broker fees so controversial in NYC?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nBroker fees were controversial because they often amounted to large sums of money, making it even more difficult for renters in a city known for its high cost of living.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_prompted_the_change_in_the_law\"><\/span>What prompted the change in the law?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nThe change in the law was prompted by a court ruling in February 2020 that determined that charging tenants broker fees was illegal. This ruling came after years of debate and advocacy by tenant rights organizations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_does_the_new_law_apply_to\"><\/span>Who does the new law apply to?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nThe new law applies to most residential leases in New York City, with a few exceptions such as cooperatives, condominiums, and certain rental situations involving luxury apartments.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_does_the_law_affect_renters\"><\/span>How does the law affect renters?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nThe law is a significant victory for renters, as it means they no longer have to pay broker fees when signing a lease. This gives tenants more freedom and flexibility when searching for a new home.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_happens_if_a_landlord_or_broker_still_tries_to_charge_a_fee\"><\/span>What happens if a landlord or broker still tries to charge a fee?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nIf a landlord or broker attempts to charge a fee in violation of the law, tenants have the right to take legal action and seek remedies, including the return of any fees paid and potential damages.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_landlords_charge_other_fees\"><\/span>Can landlords charge other fees?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nAlthough broker fees are no longer legal in most cases, landlords may still charge other fees, such as application fees, credit check fees, or security deposits, as long as these fees are in compliance with state and local laws.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_should_renters_do_if_they_are_asked_to_pay_a_broker_fee\"><\/span>What should renters do if they are asked to pay a broker fee?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nRenters should familiarize themselves with the new law and politely inform the landlord or broker that charging a broker fee is illegal. If necessary, tenants can consult with a lawyer or contact a tenant advocacy organization for guidance.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Will_this_change_make_renting_more_affordable_in_NYC\"><\/span>Will this change make renting more affordable in NYC?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nWhile the elimination of broker fees is a positive step towards making renting more affordable in NYC, it&#8217;s important to note that rents in the city are still high compared to other areas. The impact of this change on overall affordability will depend on various factors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_renters_still_use_brokers_to_help_find_apartments\"><\/span>Can renters still use brokers to help find apartments?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nYes, renters can still use brokers as long as they are working with a broker who is being paid by the landlord or property owner, rather than the tenant. In such cases, the fee is typically covered by the landlord.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_there_any_exceptions_to_the_new_law\"><\/span>Are there any exceptions to the new law?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nYes, there are a few exceptions to the new law. For example, if a tenant uses a broker to find a rental outside of New York City, broker fees may still be legal. Additionally, certain luxury apartments and rental situations involving cooperatives or condominiums may also be exempt from the new law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is broker fee legal in NYC? **No, as of March 2020, paying a broker fee is no longer legal for most renters in New York City.** For many years, one of the biggest frustrations for renters in NYC has been the hefty broker fees that accompany signing a lease. These fees, which could be as &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Is broker fee legal in NYC?\" class=\"read-more button\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#more-137961\">Read more<span class=\"screen-reader-text\">Is broker fee legal in NYC?<\/span><\/a><\/p>\n","protected":false},"author":32,"featured_media":107420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86279],"tags":[],"class_list":["post-137961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is broker fee legal in NYC?<\/title>\n<meta name=\"description\" content=\"Is broker fee legal in NYC? **No, as of March 2020, paying a broker fee is no longer legal for most renters in New York City.** For many years, one of the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is broker fee legal in NYC?\" \/>\n<meta property=\"og:description\" content=\"Is broker fee legal in NYC? **No, as of March 2020, paying a broker fee is no longer legal for most renters in New York City.** For many years, one of the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/\" \/>\n<meta property=\"og:site_name\" content=\"Namso Gen Blog - Free Credit Card Generator [100% Valid]\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/synchronyfinancial\" \/>\n<meta property=\"article:published_time\" content=\"2025-04-03T14:19:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/namso-gen.co\/blog\/wp-content\/uploads\/2024\/03\/faq.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Diana Callahan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@synchrony\" \/>\n<meta name=\"twitter:site\" content=\"@synchrony\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Diana Callahan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/\"},\"author\":{\"name\":\"Diana Callahan\",\"@id\":\"https:\/\/namso-gen.co\/blog\/#\/schema\/person\/9fc3c73d0b0ce47d129cebdfd0afefe7\"},\"headline\":\"Is broker fee legal in NYC?\",\"datePublished\":\"2025-04-03T14:19:19+00:00\",\"dateModified\":\"2025-04-03T14:19:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/\"},\"wordCount\":576,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/namso-gen.co\/blog\/#organization\"},\"articleSection\":[\"Learn\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/\",\"url\":\"https:\/\/namso-gen.co\/blog\/is-broker-fee-legal-in-nyc\/\",\"name\":\"Is broker fee legal in NYC?\",\"isPartOf\":{\"@id\":\"https:\/\/namso-gen.co\/blog\/#website\"},\"datePublished\":\"2025-04-03T14:19:19+00:00\",\"dateModified\":\"2025-04-03T14:19:19+00:00\",\"description\":\"Is broker fee legal in NYC? 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