New York City Passes Law on Broker Fees

The FARE Act, which eliminates the burden of broker fees from New York City renters and places it on landlords, became law on Saturday after passing with a veto-proof majority despite Mayor Eric Adams' refusal to sign it. The legislation aims to ease financial pressures on tenants, who often face significant upfront costs, although some critics warn that landlords may simply raise rents to offset these fees. Mayor Adams, a former real estate broker, expressed concerns that the law could lead to increased rental prices, stating, 'Life will determine if I was accurate in my concerns.' City Council members celebrated the law as a victory for working-class New Yorkers, emphasizing the importance of proper enforcement. The broker fee structure, unique to NYC and a few other cities, has long been a contentious issue among renters and real estate professionals alike. While the law's passage was widely cheered, its impact on the market remains to be seen, particularly in a city where housing costs continue to soar.