New York City FARE Act Reforms Broker Fee Payment Requirements

The City of New York has enacted a local law to amend the Administrative Code in relation to the payment of fees imposed in relation to the rental of residential real property. The law, known as the Fairness in Apartment Rentals Act (FARE Act), added Admin. Code Sections 26-699.20 through 26-699.25, and will "prohibit brokers from passing their fee onto tenants where the broker is exclusively representing the landlord's interests." The law requires landlords or their brokers to disclose and advertise any fees a tenant must pay on their rental listings and in rental agreements, or else risk a penalty, including fines and risk of a lawsuit. It also gives renters the choice of hiring a broker to represent them, and ensures tenants aren't forced to pay a broker fee as a condition of signing a lease agreement. The FARE Act takes effect 180 days after it became law in December 2024. It became law after the mayor declined to sign the bill passed by the City Council.

New York City Admin. Code , Title 20, Ch 4, new subchapter 15: Rental Real Estate Agreements: added by Int. No. 360-A (passed 11/13/24; enacted 12/16/24)[5-pg. document]