Landlord Must Refund Illegal Broker's Fee

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $4,050, including triple damages and an illegal broker’s fee. Landlord appealed and lost. Landlord claimed that a former employee acted on her own and collected the illegal broker's fee from tenant. Landlord’s policy was not to charge a broker’s fee, and its policy was posted on a sign outside tenant’s building. But landlord didn’t return the illegal fee to tenant, and was responsible for the act of its employee.

Yasgur/Furman Holding, LLC: DHCR Adm. Rev. Docket No. YA610039RO (5/7/10) [3-pg. doc.]