NYC FARE Act: who pays the broker fee now

In New York City, the person who hires the broker pays the broker. Since June 11, 2025, under the Fairness in Apartment Rental Expenses (FARE) Act, a broker working for the landlord, including any broker who posts the listing, can’t charge you a fee to rent the apartment.

You can still choose to hire your own broker to search for you, and then you pay them under your agreement. Everything else about the law, from listing disclosures to penalties, follows from that one rule.

Who pays the broker now

What the law actually says

Landlord’s agents and listing agents can’t charge tenants

The law defines a landlord’s agent as a listing agent, or an agent who cooperates with a listing agent, acts as the landlord’s subagent, or acts as a broker’s agent to find a tenant. A listing agent is a broker with a listing agreement to represent the landlord. Neither may impose or collect any fee from a tenant related to the rental. The same ban covers any agent who publishes a listing with the landlord’s permission.

Posting the listing makes the broker the landlord’s agent

There is a rebuttable presumption that a broker who publishes a rental listing does so with the landlord’s permission. In practice, if you found the apartment through a broker’s ad, the starting point is that the broker works for the landlord.

Landlords are liable for their brokers

A landlord violates the law when its own agent, or any agent listing its apartment with permission, charges you a fee.

No forced hiring

No one may make renting an apartment conditional on you hiring a broker, including a dual agent who claims to represent both sides. DCWP says tenant brokers can advertise their services, but they can’t make specific units or identifiable inventory available only to tenants who hire them.

Tenant’s agents can still charge you

A tenant’s agent is a broker who agrees to find an apartment for you, or presents your offer and negotiates on your behalf. If you sign an agreement hiring one, you pay the fee you agreed to. Broker fees are not set by law, so the amount is negotiable.

Fee disclosure rules

The FARE Act also makes every required fee visible before you commit:

• In the listing. Every rental listing must clearly and conspicuously disclose any fee the tenant has to pay. No one may post a listing saying a fee must be paid in a way the law bans.
• Before the lease. The landlord or its agent must give you an itemized written list of every fee you must pay to the landlord, or to anyone the landlord directs, with a short description of each. You sign it before the lease, they keep it for three years, and you get a copy.

The law doesn’t ban every fee. Background and credit checks are still allowed, but state law caps them at the actual cost or $20, whichever is less, and New York separately bans other application or move-in fees charged before or at the start of a tenancy. See NYC move-in costs for the full list.

Penalties

DCWP can also ask for restitution of any illegal fee. The agency’s penalty schedule rule took effect July 10, 2025. Separately, the law lets you sue in civil court, where a judge can order compensatory, injunctive and declaratory relief.

Timeline

1. Nov 13, 2024

   City Council passes the FARE Act

   Introduction 360-A of 2024.

2. Dec 16, 2024

   Becomes Local Law 119 of 2024

   Returned unsigned by the Mayor.

3. June 11, 2025

   Law takes effect

   DCWP begins enforcement.

4. July 10, 2025

   Penalty schedule rule takes effect

   DCWP rule setting penalties under 6 RCNY §6-89.

5. Aug 12, 2025

   Date on DCWP’s current broker fee FAQ

What if my lease was signed before June 11, 2025?

DCWP said when the law took effect that the ban applies even to leases signed earlier, as long as the fee had not yet been paid. Its later FAQ adds that the ban may not apply to a contractual obligation to pay a broker that arose before June 11, 2025, depending on the circumstances. If you paid before that date, the FARE Act likely doesn’t help.

Which apartments are covered

The law covers residential units in New York City, including condo and co-op apartments rented out by their owners. Its definition of “landlord” excludes a co-op corporation leasing an apartment to its own shareholder, which is how co-op owners hold their homes.

How to report an illegal broker fee

1. 1

   Save the evidence

   Screenshot the listing with the date, and keep texts, emails, the fee receipt, any agreement you signed, the fee disclosure and the lease.
2. 2

   Ask for the money back in writing

   Point to the FARE Act, say who posted the listing, and keep a copy of your request.
3. 3

   File with DCWP

   File a complaint at nyc.gov/consumers or call 311. Include the broker’s name and contact details if you have them.
4. 4

   Consider court

   The law lets anyone alleging a violation sue in a court with jurisdiction. A tenant lawyer or legal services group can advise on where to file.

Not sure which situation you’re in? Use the broker fee decision tree or the FARE Act broker fee checker. Landlords and managers should read FARE Act rules for NYC landlords.