Landlord Collected Broker's Fee

Tenant complained of a rent overcharge. Tenant claimed that landlord improperly charged a broker's fee of $3,900 for the rental of tenant's apartment. The DRA ruled for tenant. Landlord appealed and lost. Landlord was a corporation but with an individual officer who showed tenant the apartment and rented it to him. The corporate officer's wife, who was a real estate broker, had placed the ad in the newspaper for the rental of the apartment. Landlord's corporate officer directed tenant to pay the broker's fee to his wife, and the check tenant used to pay the fee was endorsed by both husband and wife. Since landlord had a clear connection and mutual financial interest, collection of the broker's fee was barred by the Rent Stabilization Code and must be refunded.

Yorkroad Assocs./Mayerhauser Realty Inc.: DHCR Adm. Rev. Dckt. No. RG410007RO (8/29/03) [6-pg. doc.]