Leasing & tenant law · 10/29/2026
Records Show How NYC Brokers Broke the FARE Act Fee Ban
Records obtained by The City show how some brokers broke or skirted the FARE Act, which bars most broker fees charged to tenants. DCWP summonses describe fees renamed as "management fees," listings for units already rented, and offers of better odds or "off-market" units for a fee. OATH hears the cases. DCWP says complaints have declined in recent months.
Reported by The CityRead the original ↗

What happened
The City reported on 10/29/2026 on records showing how some brokers broke, or skirted, New York City's broker fee ban in its first months. The FARE Act took effect in 2025. In almost all cases it bans brokers from charging fees to tenants. If a broker publishes a listing for a rental, the landlord pays that broker.
The City obtained hundreds of pages of summonses and evidence through a Freedom of Information Law request. The records come from the Department of Consumer and Worker Protection (DCWP), the agency that enforces the law, and cover the period from the law's start into 2026. They include listings that asked for broker fees directly. They also show fees renamed as "management fees," listings for apartments that were already rented, and "off-market" apartments offered to applicants for a fee. DCWP alleges all of these practices violate the law.
From the law's start until shortly before the report, New Yorkers filed more than 2,500 broker fee complaints and questions with DCWP. The agency said most lacked enough information to act on. DCWP issued 91 summonses alleging 130 violations. Fifty-five of those violations resulted in $60,000 in penalties. The agency also got more than $24,000 in fees paid back to tenants. The Office of Administrative Trials and Hearings (OATH) decides FARE Act cases.
In one case, a summons says broker Diana Belorusets told two applicants for a Crown Heights apartment that paying a broker fee would raise their chances. DCWP charged that kind of conduct as "conditioning" a rental on hiring an agent, which the law bans. DCWP Commissioner Sam Levine said complaints have declined in recent months, that more landlords appear to be complying, and that the agency has, for the first time, hired staff focused on landlord-tenant issues.
Key facts
- Law
- FARE Act, in effect since 2025
- Enforcing agency
- Department of Consumer and Worker Protection (DCWP)
- Hearings
- Office of Administrative Trials and Hearings (OATH)
- Complaints and queries
- More than 2,500
- Summonses
- 91 summonses alleging 130 violations
- Penalties
- $60,000 from 55 violations
- Refunds to tenants
- More than $24,000
- Reported
- The City, 10/29/2026
What it means
Landlords
If a broker publishes a listing for your unit, you pay that broker, not the tenant. DCWP has charged brokers for renamed fees, already-rented listings and pay-for-priority offers, so know what agents are telling applicants about your apartments.
Tenants and voucher holders
A fee called a "management fee," an "off-market" fee, or a fee for better odds may violate the law. DCWP says most complaints lack enough detail, so save listings, emails and texts before you file.
Caseworkers
Help clients keep written records of any fee request and the listing it relates to. Strong documentation makes a complaint something DCWP can act on, and DCWP has secured refunds for some tenants.
The highlights
- DCWP issued 91 summonses alleging 130 violations of the broker fee ban.
- 55 of those violations resulted in $60,000 in penalties.
- The agency got more than $24,000 in fees paid back to tenants.
Why it matters
Landlords who hire listing brokers must pay them, and tenants or caseworkers can report renamed fees or pay-for-priority offers to DCWP.
What to do: Report any broker fee request, under any name, to DCWP.
Not known yet
- How the Belorusets case and the other pending summonses were resolved at OATH
- What the few exceptions to the fee ban are
- How large individual penalties were and who paid them
- Whether any landlords, not just brokers, were charged
Background
For decades, New York City tenants often paid broker fees, commonly a large share of a year's rent, to agents hired by landlords. City consumer protection rules like this one are generally enforced through summonses. Those cases are then heard at OATH, the city's independent administrative court, where the person charged can contest the violation before any penalty is final.
Summary written by Bulwark from The City’s reporting. The original story is at thecityreporter.nyc. This is general information, not legal advice.
Related
Follow Bulwark on WhatsApp
Deadline countdowns, rule changes, voucher rents and breaking NYC housing news in your WhatsApp Updates. Free.
Send the message that opens, then save our number. WhatsApp only shows updates from saved contacts.
Brooklyn, NY
Questions about what this means for your lease?
We manage and lease buildings across the five boroughs and keep owners on the right side of tenant law.
Photo: Andre Carrotflower, CC BY-SA 4.0