{
    "dataset": "Homzora New York FARE Act Broker Fee Reference 2026",
    "jurisdiction": "New York City",
    "scope": "The Fairness in Apartment Rental Expenses Act, Local Law 119 of 2024, governing who pays broker fees in New York City rentals and what must be disclosed to a prospective tenant.",
    "the_headline": "Since 11 June 2025, a broker representing a landlord cannot charge a broker fee to a tenant. Whoever hires the broker pays, and in most New York City rentals that is the landlord. The ban applies even to leases signed before the effective date where the fee had not yet been paid.",
    "why_it_matters": "Before the Act, a tenant was routinely charged one month rent or twelve to fifteen percent of the annual rent for a broker the landlord had hired. On a 3,000 dollar apartment that is over 5,000 dollars in a cost the tenant had no part in creating. It is the largest single change to New York City upfront rental costs since the 2019 Housing Stability and Tenant Protection Act.",
    "the_disclosure_requirement": "Separately from the fee ban, every rental listing must disclose all fees a prospective tenant would pay, and the landlord or their agent must give an itemized written disclosure of every such fee, which the tenant signs before signing the lease.",
    "basis": "Compiled from the New York City Department of Consumer and Worker Protection announcement and published FAQ, with practitioner summaries used for corroboration.",
    "sources": [
        "New York City Department of Consumer and Worker Protection, announcement that the FARE Act is in effect, 11 June 2025",
        "New York City Department of Consumer and Worker Protection, Fairness in Apartment Rental Expenses Act FAQ",
        "NYC311 guidance on broker fees",
        "Published practitioner summaries of Local Law 119 of 2024"
    ],
    "source_type": "city agency, primary",
    "unverified_details": "One source reports a maximum fine of 2,000 dollars, and one reports average upfront moving costs of 12,951 dollars. Both are recorded as published figures rather than verified by Homzora. One further source describes the Act as taking effect in February 2026, which conflicts with the city own statement of 11 June 2025 and appears to be an error.",
    "verified": "2026-09-13",
    "note": "The legal challenge to the Act remained pending at the time of the city announcement. Verify the current position before relying on this. This is not legal advice and does not evaluate any particular transaction.",
    "license": "CC BY 4.0 for the Homzora compilation.",
    "methodology": "https://homzora.co/new-york/guides/methodology/",
    "rows": [
        {
            "category": "core rule",
            "subject": "Whoever hires the broker pays",
            "what_it_says": "A broker representing a landlord may not charge a broker fee to a tenant. This includes brokers who publish listings with the landlord permission.",
            "key_figure": "landlord pays",
            "notes": "In most New York City rentals the landlord hires the listing broker, which means the landlord pays."
        },
        {
            "category": "effective date",
            "subject": "When it started",
            "what_it_says": "The Fairness in Apartment Rental Expenses Act, Local Law 119 of 2024, took effect on 11 June 2025.",
            "key_figure": "11 June 2025",
            "notes": ""
        },
        {
            "category": "retroactivity",
            "subject": "Unpaid fees on earlier leases",
            "what_it_says": "The ban applies even where a lease was signed before the effective date, if the broker fee had not yet been paid.",
            "key_figure": "applies to unpaid fees",
            "notes": "Stated directly by the Department of Consumer and Worker Protection in its announcement."
        },
        {
            "category": "tenant choice",
            "subject": "You can still hire your own broker",
            "what_it_says": "A tenant may choose to hire and pay their own broker. What is prohibited is being required to pay for one the landlord hired.",
            "key_figure": "voluntary only",
            "notes": "A landlord cannot require a tenant to use a broker, or to use a dual agent representing both sides."
        },
        {
            "category": "tenant brokers",
            "subject": "Advertising is permitted",
            "what_it_says": "Tenant brokers may advertise their services, provided they do not condition the availability of specific units or identifiable inventory on being hired by the tenant.",
            "key_figure": "conditional offers prohibited",
            "notes": ""
        },
        {
            "category": "disclosure",
            "subject": "Itemized written disclosure",
            "what_it_says": "Landlords or their agents must give a prospective tenant an itemized written disclosure of every fee payable to the landlord, or to anyone at the landlord direction, with a written description of each. The tenant must sign it before signing the lease.",
            "key_figure": "signed before the lease",
            "notes": "This covers background checks, credit checks and any other charge."
        },
        {
            "category": "disclosure",
            "subject": "Listings",
            "what_it_says": "Every rental listing must disclose all fees a prospective tenant would have to pay, clearly and conspicuously, and must not include an unlawful broker fee.",
            "key_figure": "all fees in the listing",
            "notes": ""
        },
        {
            "category": "liability",
            "subject": "Landlords are liable for their agents",
            "what_it_says": "A landlord is liable for violations committed by listing agents they hired or authorized to post a listing, even where the landlord did not deal with the tenant directly.",
            "key_figure": "landlord liable",
            "notes": ""
        },
        {
            "category": "enforcement",
            "subject": "Who enforces it",
            "what_it_says": "The New York City Department of Consumer and Worker Protection. Violations may result in civil penalties and restitution, and the Act also gives prospective tenants a right to sue in civil court.",
            "key_figure": "DCWP and private action",
            "notes": "Complaints are made by calling 311 or through the DCWP website. One published source reports fines of up to 2,000 dollars, which Homzora has not verified against the text of the law."
        },
        {
            "category": "legal challenge",
            "subject": "The challenge that failed",
            "what_it_says": "The Real Estate Board of New York challenged the law on constitutional and other grounds. The lower court upheld it, a stay pending appeal was denied, and a federal court denied preliminary injunctive relief on 10 June 2025. The law took effect the following day.",
            "key_figure": "upheld",
            "notes": "The case remained pending and under judicial review at the time of that announcement. Verify the current position before relying on this entry."
        },
        {
            "category": "scale",
            "subject": "What it replaced",
            "what_it_says": "Before the Act, tenants were routinely charged a broker fee of one month rent, or between twelve and fifteen percent of the annual rent, for a broker the landlord had hired.",
            "key_figure": "12 to 15 percent of annual rent",
            "notes": "On a 3,000 dollar apartment that is between 4,320 and 5,400 dollars."
        },
        {
            "category": "scale",
            "subject": "Upfront cost context",
            "what_it_says": "One published market source reports an average of 12,951 dollars in total upfront costs to move into a New York City rental, including broker fees, before the Act took effect.",
            "key_figure": "12,951 dollars",
            "notes": "A single source figure that Homzora reports as published rather than verifying independently."
        },
        {
            "category": "what it does not do",
            "subject": "No cap on fee amounts",
            "what_it_says": "The Act does not cap broker fee amounts or create price thresholds. It assigns responsibility for payment to whoever hired the broker.",
            "key_figure": "no cap",
            "notes": ""
        },
        {
            "category": "what it does not do",
            "subject": "Rent is not addressed",
            "what_it_says": "The Act does not limit rent. Some commentators expected landlords to recover broker costs through higher rents, which would move the cost into monthly installments rather than removing it.",
            "key_figure": "not addressed",
            "notes": "Homzora takes no position on whether that has happened and publishes no figure for it."
        }
    ]
}