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Question about legality of broker's fee unknown to landlord — Brooklynian

Question about legality of broker's fee unknown to landlord

ap
ap
edited November -1 in Prospect Heights

Subject: Question about legality of broker's fee unknown to landlord

We met a super-nice woman who works for a small local RE firm. We told her we were looking for an apt. and she showed us one we liked.

We filled out the application and she set up a walk-through with the owner, who lives in Queens. He confirmed the rent/security deposit amount and we went home happy.

The next day, we got an email from the broker saying we'll need to pay a 1-month broker's fee.

THE CLINCHER: The broker told us NOT to mention the broker's fee to the owner of the bldg. It won't be mentioned in the lease or anywhere else because the owner can't know about it.

Is this legal?

We told her we cannot afford a broker's fee and she said she'd work with us on it. (BTW, we don't have the owner's contact info and we wouldn't want to tattle on her since she knows where we live, ya know?)

Any comments?

Comments

  • arches
    arches
    Sounds like maybe the owner is paying her a brokers fee and she wants one from you as well (behind his back). I'm not sure its illegal, but its certainly unethical. I'd walk away.
  • carnivore
    carnivore
    Did you sign any kind of contract with the broker before being shown the apartment? Generally there is one. If the contract didn't have a broker's fee in it, then you don't owe one. Don't pay it. It you really want the apartment, try to delay paying the fee until after the lease is signed by both parties. Once the lease is signed (and you have your copy), if there's no written agreement stipulating a broker's fee, then you don't owe one and there's nothing the broker can do about it.

    I'm not in the real estate business and I'm not a lawyer, so you should confirm this with a lawyer before doing it, but I think it should work.
  • lo kee
    lo kee
    What did the "application" state?
  • ap
    ap
    Thanks, everyone. The application was pretty general--just our names, previous landlords, employment info, references, etc.

    We would walk away, but the apt. is spacious and affordable--we haven't found anything like it in our price range in months of searching.

    The broker told us her fee couldn't be written in to the lease (we offered to add $100/month to the rent). We could probably do what Carnivore suggested and just sign the lease, knowing that we wouldn't have to pay the fee after that.

    We will probably check with a lawyer. Thanks again, everyone!
  • arches
    arches
    Keep in mind that it's pretty easy to find the landlord contact info via NYC ACRIS. That gives you a lot of leverage if the broker insists on being sketchy/unethical about this fee.

    Start here:
    http://a836-acris.nyc.gov/Scripts/CoverPage.dll/lookup
  • raw
    raw
    Don't be suckers. Screw offering an extra $100/month. Report this "super nice" crook.
  • carnivore
    carnivore
    raw wrote: Don't be suckers. Screw offering an extra $100/month. Report this "super nice" crook.
    But if they actually want the apartment, they're better off not making waves until after the lease is signed. I agree about not paying any extra though.
  • prospectus
    prospectus
    Did the super-nice broker mention her fee before she showed you the apartment?
  • bkchickie
    bkchickie
    As my friend described it, real estate in NYC is just one baby step above organized crime. The one good thing about this recession is that it'll take down a lot of these sleezeball agents.
  • unrepentant fenian
    unrepentant fenian
    BKChickie wrote: As my friend described it, real estate in NYC is just one baby step above organized crime. The one good thing about this recession is that it'll take down a lot of these sleezeball agents.
    That is the most accurate description I've ever heard. You're friend is very smart.
  • bohuma
    bohuma
    Broker doesn't seem smart to me. When I used a broker to find a rental we discussed her fee in our first meeting. I was happy to pay because she got me a nice apartment. When she advised me what checks to bring for the lease signing, one was for the broker's fee. I recall signing a brokerage agreement when I applied for the apartment, that agreement explicitly stated the fees.
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