Real Estate

New York brokers fee ban on hold after court grants victory to agents

The ban was supposed to save renters big money

After New York state banned real estate agents and brokers from charging renters a fee for securing an apartment, the New York real estate community fought back, claiming the move was “misguided and harmful.”

In response to New York’s move, the Real Estate Board of New York, New York State Association of Realtors and numerous residential brokerage firms sued the state, aiming to get the ban overturned.

And it looks like they’ve succeeded, at least for the time being.

On Monday, a New York judge granted a temporary restraining order in the case, blocking the state’s ban on broker commissions paid by tenants of rental properties, which was put into place just a week ago.

The original ban meant that renters could save thousands of dollars when applying for an apartment. The rule shifts the fee burden to landlords, but has been reversed by a judge in Albany.

But the move angered real estate agents in the state, who fought back in earnest.

“The entry today by the Court in Albany of an order temporarily halting the implementation of New York State Department of State’s interpretation of the Statewide Housing Stability and Tenant Protection Act means that thousands of hardworking, honest real estate agents across New York State can do business in the same way they did prior to last week’s DOS memo without fear of discipline by the DOS,” New York State Association of Realtors President Jennifer Stevenson and Real Estate Board New York President James Whelan said in a statement.

“We look forward to ultimately resolving this matter in Court in the weeks ahead. Meanwhile, we appreciate all of our members’ support and vigilance during this period of upheaval and confusion. We also want to thank Claude Szyfer and his team at Stroock & Stroock & Lavan LLP for their tireless efforts on this matter,” the statement continued.

To view the real estate agents’ lawsuit, click here.

To view the restraining order, click here.

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