Leasing & tenant law · 10/31/2026
Columnist: Rare FARE Act fines show brokers deserve credit
In a Real Deal opinion column published 10/31/2026, the writer argues that media coverage of the FARE Act ignores how rarely brokers are found to break it. He says complaints keep falling and fines amount to about $115 a day across 2.3 million rental units. He also disputes the city consumer protection commissioner's push to ban brokers from representing both landlord and tenant.
Reported by The Real Deal · New YorkRead the original ↗
What happened
On 10/29/2026, The City published records showing how some brokers broke or skirted the FARE Act. The law took effect in 06/2025. It bars most broker fees charged to tenants. If a broker publishes a listing for a rental, the landlord is supposed to pay that broker. The records are summonses and evidence from the Department of Consumer and Worker Protection (DCWP) dated between 06/2025 and 04/2026. The City obtained them through a Freedom of Information Law request. They describe fees renamed as "management fees," listings for units already rented, and offers of better odds or "off-market" units in exchange for a fee. DCWP charged some of these brokers with "conditioning," which means making a rental depend on the tenant hiring an agent.
The City reported that New Yorkers filed more than 2,500 broker fee complaints and queries with DCWP from the start of the law through the middle of 10/2026. DCWP said most of them lacked enough information to act on. The agency issued 91 summonses alleging 130 violations. Of those, 55 violations resulted in $60,000 in penalties, and more than $24,000 in fees was paid back to tenants. The Office of Administrative Trials and Hearings (OATH) hears the cases. DCWP Commissioner Sam Levine said complaints have declined in recent months and that more landlords appear to be complying.
On 10/31/2026, The Real Deal ran an opinion piece arguing that this coverage is unfair to brokers. It said only about 1 in 45 complaints and inquiries has led to a fine. It said the city collects about $115 a day in FARE Act fines, and that the $60,000 works out to less than 3 cents per apartment across 2.3 million rental units. The column argued that compliance has been very high. It also acknowledged that many violations likely go unreported, especially when the tenant who paid gets the apartment.
The Real Deal piece also noted that Levine wants New York State to bar brokers from representing both the tenant and the landlord in the same deal. Levine said the two sides have "completely misaligned interests." The columnist disagreed and argued that landlords and tenants mostly share the goal of filling a unit.
Key facts
- Law
- FARE Act, in effect since 06/2025; bars most broker fees charged to tenants
- Enforcing agency
- Department of Consumer and Worker Protection (DCWP)
- Hearings
- Office of Administrative Trials and Hearings (OATH)
- Complaints and queries
- More than 2,500 through mid-10/2026 (The City)
- Summonses
- 91 summonses alleging 130 violations
- Penalties
- $60,000 from 55 violations
- Refunds to tenants
- More than $24,000
- Records period
- Summonses dated 06/2025 to 04/2026, obtained via FOIL
What it means
Landlords
If your broker publishes a listing for your unit, you are expected to pay that broker, not the tenant. DCWP has treated renamed charges such as "management fees" and fees for "off-market" access as alleged violations.
Tenants and voucher holders
Being asked to pay a broker fee to get a listed apartment, or to pay for better odds, may violate the FARE Act. DCWP says most complaints lacked enough detail to act on, so keep listings, messages and receipts if you file one.
Caseworkers
Clients facing fee requests can complain to DCWP, and cases are heard at OATH. Some tenants have received refunds, so it helps to save written proof of any fee request.
The highlights
- The city issued 55 FARE Act fines totaling $60,000 in about a year and a half.
- $24,000 has been recovered for tenants, and 1 in 45 complaints led to a fine.
- Commissioner Sam Levine wants the state to bar brokers from representing both sides.
Why it matters Landlords
Enforcement of the broker fee law continues, and a proposed state ban on dual representation could change how landlords use brokers.
What to do: Check that your listings and leasing practices follow FARE Act broker fee rules.
Not known yet
- How many of the 91 summonses are still pending at OATH
- How complaint numbers changed month by month
- How penalty amounts are set per violation
- Whether New York State will act on Levine's proposal to bar brokers from representing both sides
Background
In New York City, DCWP enforces many local consumer protection laws. Summonses it issues are usually decided at OATH, the city's administrative court, where the person charged can contest the case before a hearing officer. Real estate brokers themselves are licensed by New York State, so changes to how brokers may represent clients generally require state action.
Also drawn from: These Records Show Broker Fee Violations as NYC’s Ban Began. Here’s What They Say. (The City)
Summary written by Bulwark from The Real Deal · New York’s reporting. The original story is at therealdeal.com. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0