Do I owe a broker fee? NYC FARE Act decision tree
Answer a few questions to see if you owe a broker fee under NYC’s FARE Act: who listed the unit, who hired the broker, what was disclosed, and how to report it.
6 min read · Updated
Under NYC’s FARE Act, you owe a broker fee only if you chose to hire your own broker and that broker didn’t list the apartment for the landlord. If the broker posted the listing, works for the landlord, or made you sign with them to see the place, you don’t owe the fee.
Answer the questions below to see where you stand. It takes about five clicks and ends with the next step to take.
Do I owe this broker fee?
Step 1What are you being asked to pay?
At a glance
- Law in effect
- June 11, 2025
- Listing broker can charge tenant
- No
- Broker you chose to hire
- You pay, per your agreement
- Report violations to
- DCWP
- nyc.gov/consumers or 311
How each question decides the answer
1. Is it really a broker fee?
Landlords can still charge a credit and background check fee, capped at the actual cost or $20, whichever is less. Almost every other application, processing or move-in fee is banned by state law. If you’re being asked for one of those, the broker fee rules aren’t the main issue. See NYC move-in costs.
2. When was it paid?
The FARE Act took effect June 11, 2025. DCWP said that day the ban applies even to earlier leases if the fee had not been paid. Its August 2025 FAQ adds that an obligation to pay that arose before June 11, 2025 may not be covered, depending on the circumstances.
3. Who does the broker work for?
This is the heart of the law. A landlord’s agent, or any agent who publishes the listing with the landlord’s permission, can’t impose or collect a fee from you. The law presumes that whoever posted the listing had the landlord’s permission. That presumption can be rebutted, but you don’t have to prove it.
4. Did you hire them, and was it really your choice?
You can hire a tenant’s broker to search and negotiate for you. What nobody can do is make hiring a broker a condition of seeing or renting a specific apartment. A broker who hands you an agreement at the door of their own listing is the situation the law was written to stop.
5. Did your own broker also list the unit?
The ban on listing brokers applies to “any agent” who publishes the listing with the landlord’s permission. So even if you signed with a broker, they can’t collect a fee from you for a unit they listed for the landlord.
What the fee is worth
Broker fees aren’t set by law. As an example, if a broker asks for 15% of a year’s rent, the amount at stake looks like this:
| Monthly rent | Fee at 15% of a year | Same as months of rent |
|---|---|---|
| $2,500 | $4,500 | 1.8 |
| $3,000 | $5,400 | 1.8 |
| $3,500 | $6,300 | 1.8 |
| $4,500 | $8,100 | 1.8 |
If you’re told to pay a fee you don’t owe
- 1
Screenshot the listing
Capture the ad with the date and the name of the broker who posted it. Listings get edited or taken down. - 2
Ask questions in writing
Who do you represent? Did you post this listing? Is this fee on the itemized fee disclosure? Written answers are evidence. - 3
Check the disclosure
Before you sign a lease, the landlord or its agent must give you an itemized list of every fee you must pay, for you to sign. A broker fee to the landlord’s agent shouldn’t be on it. - 4
Report it
File with DCWP at nyc.gov/consumers or call 311. DCWP can seek penalties and restitution, and you can also sue in court.
Want the full rules? Read NYC FARE Act: who pays the broker fee now, run the FARE Act broker fee checker, and total up your cash needs with the move-in cost calculator.
Re-verified 2026-10-12; no factual errors found. Tree logic follows Local Law 119 of 2024 (PDF text opened): §20-699.21(a)(1) landlord’s agent ban, (a)(2) ban on any agent who publishes a listing with landlord permission (applies even if the tenant also hired that agent), (c) no conditioning on engaging an agent incl. dual agent, (d) no listing showing an unlawful fee, (e) rebuttable listing presumption; §20-699.22 disclosure; §20-699.24 private action. Timing answers use the DCWP June 11, 2025 release and the 08/12/2025 FAQ, which differ slightly; both reflected. $20 screening cap and ban on other pre-tenancy fees from RPL §238-a(1). AG guide: commissions not set by law and should not be paid until a lease signed by the landlord is offered. The 15% example is illustrative, not a typical rate; table arithmetic checked (e.g. 2,500×12×0.15=4,500 = 1.8 months).
Sources
- Local Law 119 of 2024 (FARE Act), full text · New York City Council (via intro.nyc) (accessed October 12, 2026)
- Frequently Asked Questions: Broker Fees (08/12/2025) · NYC Department of Consumer and Worker Protection (accessed October 12, 2026)
- DCWP Announces the FARE Act Is Now in Effect · NYC Department of Consumer and Worker Protection (accessed October 12, 2026)
- Fairness in Apartment Rental Expenses (FARE) Act · NYC Department of Consumer and Worker Protection (accessed October 12, 2026)
- Real Property Law §238-a: Fees, charges and late fees · New York State Senate (accessed October 12, 2026)
- Fact Sheet #9: Renting an Apartment - Security Deposits and Other Charges (FS-09, 11/2025) · NYS Homes and Community Renewal (accessed October 12, 2026)
- Residential Tenants’ Rights Guide (broker commissions) · New York State Office of the Attorney General (accessed October 12, 2026)
General information, not legal, tax or financial advice. Rules change; confirm with the agency or a professional before you act.