Illegal Broker's Fee Charged

September 30, 2005

LVT Number: 18395

Tenant complained of a rent overcharge, claiming that landlord charged an illegal broker's fee when he moved in. The DRA ruled for tenant. Landlord appealed, claiming that the broker's fee was legal because the owner, manager, and broker were separate entities. The DHCR ruled against landlord. The broker worked in the same office as landlord's manager. And the broker's bank deposit slip used an address that implied that the manager was the broker's agent. The broker also seemingly had moved its office with the manager from the same location to a new shared location.

Tenant complained of a rent overcharge, claiming that landlord charged an illegal broker's fee when he moved in. The DRA ruled for tenant. Landlord appealed, claiming that the broker's fee was legal because the owner, manager, and broker were separate entities. The DHCR ruled against landlord. The broker worked in the same office as landlord's manager. And the broker's bank deposit slip used an address that implied that the manager was the broker's agent. The broker also seemingly had moved its office with the manager from the same location to a new shared location. So the brokerage service wasn't independent, and landlord couldn't charge a broker's fee.

MMF&S Assocs.: DHCR Adm. Rev. Dckt. No. TF410025RO (8/11/05) [2-pg. doc.]

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