Fairness in Apartment Rental Expenses (FARE) Act Takes Effect Tomorrow – What You Need to Know

As of tomorrow, June 11, 2025, the FARE Act (colloquially known as the “Broker Fee Law”) will officially go into effect in New York.

While the Real Estate Board of New York (REBNY) commenced a Federal Court action seeking to stay enforcement of the FARE Act, as of the time of this writing, the Court has not issued any such stay. Unless the court acts immediately, the law will take effect as scheduled.

For our coverage of the background and context of the FARE Act, please click here.

Key Takeaways:

• Landlord Responsibility: When renting any residential unit in New York City, land owners will be required to pay all broker fees connected with such rental, unless the tenant separately retains their own broker.
• Operational Impact: Enactment of the FARE Act may affect your leasing strategy and your relationships with brokers. It is likely that your cost on a per-apartment basis will also increase as a result of the law’s enactment.
• Compliance Requirements: After the FARE Act goes into effect, you may need to revise leasing documents and update internal procedures in order to ensure compliance.

We encourage you to contact your trusted KMWB advisor with any questions or concerns with respect to the FARE Act. Our team is actively advising clients on ways to best minimize disruption and navigate the likely transition resulting from this act with confidence.