The FARE Act Takes Effect in NYC

Overview: What You Need to Know

The Fairness in Apartment Rental Expenses (FARE) Act, effective June 11, 2025, significantly changes how broker fees are handled in New York City.

Under the Act:

  • Property owners must pay broker fees when the broker is either/both (a) acting on the property owner’s behalf or (b) has listed the property with the property owner’s permission.
  • Tenant’s payment of an exclusive listing advertised on an owner’s behalf is expressly prohibited.
  • Property owners cannot require tenants to engage a broker; including dual agents.
  • Violations could result in civil penalties (up to $2,000 per violation), amongst other things.
  • There now exists a rebuttable presumption that any listing published by a broker was done with the property owner’s permission, making the owner potentially liable for unauthorized listings.

Compliance Checklist for Landlords

  1. Broker Fee Responsibility: Property owners must pay all broker fees unless the tenant independently hires a broker.
  2. Fee Disclosure Requirements: Before lease execution, property owners must provide tenants with a signed, itemized list of all fees payable to the property owner.
  3. Listing Disclosures: Leases should include clear language confirming broker involvement.

Best Practices for Advertising and Listings

  1. Monitor Your Listings.
  2. Control Your Advertising Channels.

We encourage you to contact your trusted KMWB advisor with any questions or concerns regarding the FARE Act. Our team is actively advising clients on how to minimize disruption and navigate the transition with clarity and confidence. We’re here to help you stay compliant and informed every step of the way!