Illegal Broker's Fee

Subtenant complained of a rent overcharge. He claimed tenant was an illusory prime tenant and that he'd paid an illegal brokerage fee to rent the apartment. The DRA ruled for subtenant, and found that charging the broker's fee was a willful overcharge. The DRA found that landlord, tenant, and broker were all responsible for triple damages for the overcharge. Land- lord appealed, claiming that it wasn't responsible for the broker's fee. The DHCR ruled against landlord. The broker collected the rental fee from subtenant on behalf of landlord. Under the Tenant Protection Regulations, ``rent'' includes payment by tenant of a fee or rental commission to landlord or to a real estate broker who is landlord's agent.

630 Shore Road, Apt. 616, Long Beach: DHCR Adm. Rev. Dckt. No. EF 710339-RO (10/6/93) [8-page document]