AnswerAs of Oct. 28, 2026, a broker who works for the landlord in New York City cannot charge the tenant. That includes any broker who lists the apartment with the landlord's permission. The landlord pays its own broker; a tenant pays a broker only if the tenant chooses to hire one. That is the FARE Act (Local Law 119 of 2024), in force since June 11, 2025. The city's Department of Consumer and Worker Protection (DCWP) enforces it. On July 13, 2026, a federal appeals court upheld the law against the real estate industry's main constitutional challenge.

Status at a glance (as of Oct. 28, 2026)

Date What happened Source
Nov. 13, 2024 City Council passes Int. 360-A, the Fairness in Apartment Rental Expenses (FARE) Act NYC Council (Legistar)
Dec. 13, 2024 Becomes Local Law 119 of 2024 without the mayor's signature (returned unsigned Dec. 16) Legistar
Dec. 16, 2024 REBNY and others sue in federal court (S.D.N.Y. No. 1:24-cv-09678) Court docket
June 10, 2025 Judge Ronnie Abrams dismisses the free-speech and preemption claims and denies a preliminary injunction; the Contracts Clause claim survives Court docket; 2d Cir. opinion
June 11, 2025 Law takes effect DCWP
July 10, 2025 DCWP penalty schedule (6 RCNY § 6-89) takes effect; the court denies an injunction pending appeal NYC Rules; court docket
July 13, 2026 Second Circuit affirms (No. 25-1506) 2d Cir. opinion
Aug. 5, 2026 Appeals court mandate filed in the district court Court docket
Now Law in force; the narrow Contracts Clause claim is still pending in the district court 2d Cir. opinion; court docket

Who pays the broker now

  • The landlord's broker is paid by the landlord. Under Admin. Code § 20-699.21, a "landlord's agent" may not "impose any fee on, or collect any fee from, a tenant" for the rental. The term covers the listing agent and agents cooperating with the listing agent or acting as subagents.
  • Listing it means you work for the landlord. Any agent who publishes a listing with the landlord's permission is barred from charging the tenant. The law presumes, subject to rebuttal, that an agent who publishes a listing had the landlord's permission.
  • Tenants can still hire their own broker. DCWP says the law does not stop tenants from "choosing to hire their own broker and pay broker fees". Tenant brokers may advertise their services, so long as they don't make specific units or "identifiable inventory" available only to tenants who hire them.
  • No one can require a broker. No person may condition a rental on the tenant hiring any agent, including a dual agent who represents both sides. DCWP's commissioner told Gothamist in June 2026: "If people are telling us they are unable to get rental housing but for paying a broker fee, we consider that conditioning."
  • The landlord is on the hook. If its agent, or an agent listing with its permission, charges the tenant, the landlord is also in violation.

What a landlord's agent may not pass to the tenant

  • Any fee "related to the rental". The law defines "fee" broadly: money charged for services, "including but not limited to a commission".
  • The one carve-out is fees allowed by New York Real Property Law § 238-a(1). DCWP says the law does not stop landlords from charging prospective tenants for background checks and credit checks. Separately, the NY Department of State has said the state's $20 application-fee limit also applies to licensed agents acting for a landlord (DOS guidance announced Sept. 13, 2019).
  • No fee in the ad. No one may post a listing saying fees must be paid in a way that would violate the law.

Disclosure rules for every listing and lease

  • In the listing: any fee the tenant must pay has to be disclosed "in a clear and conspicuous manner".
  • Before the lease: the landlord or its agent must give the tenant an itemized written disclosure of every fee the tenant must pay to the landlord, or to anyone at the landlord's direction, with a short description of each.
    • The tenant signs it before signing the lease.
    • The landlord or agent keeps the signed copy for three years and gives the tenant a copy.

Penalties and enforcement

  • Fines (6 RCNY § 6-89, effective July 10, 2025):
Violation First Second Third and later
Charging a prohibited fee, landlord liability, conditioning on an agent, or advertising an unlawful fee $750 ($1,000 on default) $1,800 ($2,000 on default) $2,000
Failing to disclose fees in the listing, or to give the itemized disclosure $375 ($500 on default) $900 ($1,000 on default) $1,000
  • Repeat violations count when they occur within two years. The law caps the fines at $1,000/$2,000 for fee violations and $500/$1,000 for disclosure violations.
  • Refunds: DCWP may seek restitution of illegal fees.
  • Process: DCWP issues a summons, and the respondent can contest it at the city's Office of Administrative Trials and Hearings (OATH).
  • Tenants can sue. The law creates a private right of action in civil court for compensatory, injunctive and declaratory relief.
  • How to complain: through DCWP's online form or 311. DCWP asks for evidence such as texts, screenshots and receipts.
  • Enforcement so far (DCWP figures as of June 1, 2026, reported by Gothamist):
    • 2,033 complaints;
    • 74 summonses alleging 100 violations;
    • about $15,500 refunded to 20 tenants;
    • $27,125 in penalties from 33 brokers for 46 violations.

Where the REBNY lawsuit stands (as of Oct. 28, 2026)

  • Who sued: the Real Estate Board of New York, the New York State Association of Realtors, several brokerages and two landlords. They argued the law violates free speech, impairs existing contracts and is preempted by state law.
  • District court (June 10, 2025): Judge Abrams dismissed the free-speech and preemption claims and denied a preliminary injunction. She let the Contracts Clause claim proceed. The law took effect the next day.
  • Second Circuit (July 13, 2026): a three-judge panel affirmed. It held the law regulates commercial speech in a content-neutral way and survives intermediate scrutiny. In Judge Barrington Parker's words, "brokers are not banned from posting open listings – they simply cannot charge tenants fees when they openly list an apartment for rent." The panel also found the plaintiffs unlikely to win their Contracts Clause claim.
  • What's left: the Contracts Clause claim is still pending in the district court. The appeals court described it as limited to tenant-pays exclusive listing agreements signed before Dec. 13, 2024 that were still in effect after June 11, 2025.
  • What's next: REBNY said after the ruling that it "will explore pathways to continue our legal challenge". No court has blocked the law.

What it means at the high end of the market

  • No luxury exemption. The law has no rent threshold. It covers apartments in condo and co-op buildings (a co-op corporation leasing to its own shareholder is excluded from "landlord").
  • Condo owners who lease their unit are the landlord. If you hire a listing broker, budget to pay that broker. Make sure the listing and the pre-lease fee disclosure follow the rules.
  • Renters hiring a search broker. If you want someone to search on your behalf, get a written agreement that says you are hiring them, and get the fee in writing. The law lets you hire and pay your own agent; it doesn't let anyone require it.
  • Pre-2025 contracts. DCWP says the ban "may not apply" to a tenant's contractual obligation that arose before June 11, 2025, "depending on the particular circumstances". Ask an attorney if this applies to you.
  • Rents. Whether landlords have raised rents to cover broker costs is disputed. The industry says yes, and the bill's sponsor and other supporters dispute it. This page takes no position.

Questions to ask before you list or rent

  1. Owners: Who is the broker working for, and is the commission in the listing agreement paid by me?
  2. Owners: Does every listing disclose all tenant-paid fees, and do I have an itemized disclosure form for the tenant to sign before the lease?
  3. Renters: Is this agent the landlord's agent, the listing agent, or mine? If I'm being asked to pay, where is that in writing?
  4. Renters: Am I being told I must hire this agent to see or rent the unit? If so, DCWP treats that as conditioning.

Talk with a local agent

Browse Find a Realtor or the Manhattan agents page on Haute Real Estate Network.

Featured: Haute Real Estate Network members in New York include Eugenia Foxworth (President/Owner, Foxworth Realty, New York) and Richard Steinberg (The Richard Steinberg Team, New York).

Related pages (all render in Chrome 2026-10-28 with their own title and canonical)

Sources

  1. NYC Council (Legistar), Int. No. 0360-2024 (Int. 360-A) legislation detail, history and enacted text: "Enactment date: 12/13/2024", "Law number: 2024/119", "Returned Unsigned by Mayor" Dec. 16, 2024; Admin. Code §§ 20-699.20–20-699.25. https://legistar.council.nyc.gov/LegislationDetail.aspx?ID=6557858&GUID=2E6273DC-FF0F-40B2-AAB5-B9B3D9BD09DB (fetched 2026-10-28).
  2. NYC DCWP, "Fairness in Apartment Rental Expenses (FARE) Act" page and FAQs 1–9 ("Last Updated 6/02/2026"), plus the downloadable FAQ PDF. https://www.nyc.gov/site/dca/about/FAQ-Broker-Fees.page (fetched 2026-10-28).
  3. NYC DCWP, "New Laws & Rules" (Local Law 119 of 2024, effective June 11, 2025). https://www.nyc.gov/site/dca/about/new-laws-rules.page (fetched 2026-10-28).
  4. NYC Rules, "Penalties for Violation of Prohibition of Certain Fees Charged to Tenants by Landlords and Real Estate Agents": rule status Adopted, effective July 10, 2025. Notice of Adoption adding 6 RCNY § 6-89. https://rules.cityofnewyork.us/rule/proposed-penalties-for-violation-of-prohibition-of-certain-fees-charged-to-tenants-by-landlords-and-real-estate-agents/ (fetched 2026-10-28).
  5. NYC311, "Broker Fees" (KA-03665). https://portal.311.nyc.gov/article/?kanumber=KA-03665 (fetched 2026-10-28).
  6. NYC Rent Guidelines Board, "Broker Info". https://rentguidelinesboard.cityofnewyork.us/resources/apartment-hunting/broker-info/ (fetched 2026-10-28).
  7. Real Estate Board of New York, Inc. v. City of New York, No. 25-1506 (2d Cir. July 13, 2026), slip opinion. https://ww3.ca2.uscourts.gov/decisions/OPN/25-1506_opn.pdf (fetched 2026-10-28).
  8. Real Estate Board of New York, Inc. v. City of New York, No. 1:24-cv-09678 (S.D.N.Y.), docket via CourtListener/RECAP, last updated Aug. 5, 2026 (entries 78, July 10, 2025, and 79, USCA mandate, Aug. 5, 2026). https://www.courtlistener.com/docket/69471455/real-estate-board-of-new-york-inc-v-the-city-of-new-york/ (fetched 2026-10-28).
  9. Real Estate Board of New York, Inc. v. City of New York, No. 25-1506 (2d Cir.), docket via CourtListener/RECAP (argued Nov. 3, 2025). https://www.courtlistener.com/docket/70553151/real-estate-board-of-new-york-inc-v-city-of-new-york/ (fetched 2026-10-28).
  10. Courthouse News Service, "Landlords lose appeal challenging NYC broker fee ban," Nina Pullano, July 13, 2026. https://www.courthousenews.com/landlords-lose-appeal-challenging-nyc-broker-fee-ban/ (fetched 2026-10-28).
  11. Gothamist, "A year since NYC banned most broker fees, a modicum of fines and the 'bait and switch'," David Brand, June 11, 2026 (DCWP figures as of June 1, 2026). https://gothamist.com/news/a-year-since-nyc-banned-most-broker-fees-a-modicum-of-fines-and-the-bait-and-switch (fetched 2026-10-28).
  12. NYS Department of State, "The New York State Department of State Issues Guidance for Real Estate Professionals Concerning the Statewide Security and Tenant Protection Acts of 2019" (Sept. 13, 2019). https://dos.ny.gov/news/new-york-state-department-state-issues-guidance-real-estate-professionals-concerning-statewide (fetched 2026-10-28).

This article is editorial and informational only, not legal or brokerage advice. The FARE Act's enforcement and the related litigation may change; confirm the current rules with DCWP and a licensed New York attorney before you list, lease or sign.