Owner guide
The FARE Act: What NYC Owners Pay Now
Who pays the broker, what must be disclosed and where building fees fit, since June 11, 2025.
The rule in one sentence
Since June 11, 2025, a broker who represents the owner cannot charge the tenant a fee: the owner who hires a broker pays that broker.
What this means when you hire Raphael
- Raphael’s brokerage fee is paid by you, as agreed in the written listing agreement with The Corcoran Group.
- A tenant may still hire and pay their own broker to search on their behalf; that agent represents the tenant, not you.
- The cost of leasing becomes part of your rental budget, which is one reason a realistic rent and a short vacancy matter.
Disclosure duties
Listings must disclose, clearly and conspicuously, every fee the tenant will have to pay to rent the apartment. Before the lease is signed, the tenant receives a written, itemized disclosure of those fees. The city’s consumer protection agency (DCWP) enforces the law, and tenants can also bring claims.
Building fees
Condos and co-ops often charge their own application, processing or move-in fees. They are not broker fees, but if the tenant is expected to pay them, they belong in the fee disclosure. Separately, state law caps what a landlord may charge an applicant for a background check. Check your building’s fee schedule before listing so the listing is accurate from day one.
Legal challenges
The real estate industry challenged the law in federal court. A federal judge declined to block it in 2025, and the Court of Appeals for the Second Circuit affirmed that decision on July 13, 2026. Part of the case, concerning agreements signed before the law, was still pending. Check the current status before relying on any detail.
This guide explains common steps for owners. It is not legal or tax advice; for a decision about your lease, your building documents or your taxes, consult an attorney or tax professional.
Sources
- NYC DCWP — Broker fees and the FARE Act (FAQ)
- U.S. Court of Appeals, Second Circuit — REBNY v. City of New York, No. 25-1506 (July 13, 2026)
- NY Real Property Law § 238-A (application fees)
Checked 2026-11-09. Rules change: confirm the current version before relying on them.