Associated Press

NYC bans unusual practice of forcing tenants to pay real estate agents hired by landlords

Mandatory broker fees, an unusual feature of apartment hunting in New York City that has long been criticized by tenants, will be banned under legislation passed Wednesday after overcoming a fierce backlash from the city’s real estate lobby. In a system that exists in New York and almost nowhere else in the country, tenants often have to pay the real estate agent’s commission before moving into an apartment, even if the agent is hired by the landlord. The fees are very high, often amounting to 15% of the annual rent, or about $7,000 for the average-priced New York City apartment.