The proposed legislation sets strict penalties for landlords and brokers charging tenants without a prior agreement, with fines increasing per offense. Brooklyn City Councilmember Chi Osse champions the measure, asserting it promotes accountability and fairness. The law aims to address the exorbitant broker fees that burden renters, particularly within New York City, where costs can exceed $10,000. Despite broad support, the Real Estate Board of New York is challenging the law in federal court, which may delay its implementation. A public hearing by the DCWP is scheduled for May 14.
Landlords or brokers who charge tenants without an agreement face escalating fines, designed to curb excessive fees charged and protect renters' rights.
Councilmember Chi Osse emphasized that the proposed penalties are fair and stressed the need for accountability by requiring rulebreakers to return any improperly collected fees.
The law reflects growing resentment towards broker fees, particularly high commissions that renters feel are unreasonable, given the simplicity of online listings.
Legal challenges persist, as the Real Estate Board of New York responds vigorously to the proposed broker fee regulations, citing previous court successes.
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