NYC Council Passes Bill on Broker Fee Shift

The New York City Council has passed the FARE Act, which requires landlords to pay broker fees unless the tenant independently hires a broker, thereby reducing the upfront costs for renters. The legislation, passed with a veto-proof majority, has garnered support from tenant advocacy groups who view broker fees as an unfair burden. Opponents, including those in the real estate industry, caution that landlords might increase rents to cover these costs, potentially negating the benefits for tenants. Mayor Eric Adams has expressed concerns about these possible unintended consequences, though it remains uncertain if he will veto the bill. The New York City Department of Consumer and Worker Protection will enforce the measure, with penalties for noncompliance.