Landlord's Agent Charged Improper Broker's Fee

Rent-stabilized tenant complained of rent overcharge. Among other things, she claimed that landlord charged an illegal broker's fee when she rented the apartment. The DRA ruled for tenant and ordered landlord to refund the broker's fee plus triple damages, totalling $5,667. Landlord appealed and lost. Landlord argued that the broker's fee wasn't rent. But landlord and the broker had an affiliation and financial interest in common.  And RSC Section 2525.1 bars the collection of a fee or rental commission by landlord or by a broker who is an agent or employee of landlord. Landlord Jamaica Estates LLC and Zara Realty Holding Corp., its managing agent, were affiliated through a common family ownership and having the same business address. Tenant always dealt with Zara Realty and in fact thought Zara was the landlord. The individual broker was a staff member of Zara Realty Holding. He also had a consultant's agreement with the landlord, which made him an agent of the landlord. And Zara Realty had referred tenant to the broker. [Get the PDF of the decision here.]

Jamaica Estates LLC: DHCR Adm. Rev. Docket No. CT110025RO (2/12/15) [6-pg. doc.]