After state regulators unexpectedly issued guidance that ended tenant-pay rental commissions, confusion ensued across brokerage firms. Here are some reactions:
- Douglas Elliman in an email to agents obtained by the NYTimes: “This Guidance is not the law, but rather a position taken by the DOS as it relates to licensed real estate agents and brokers. We do not believe that this Guidance is consistent with the law.”
- Corcoran Group: “Remember that this interpretation merely represents the opinion of the DOS. Until further notice, we recommend continuing to conduct your business in accordance with the law and all applicable regulations, not advisory opinions promulgated in haste.” Corcoran later told its agents to adhere to the guidance for the time being, TRD reported.
- Worth Noting: Compass, Warburg Realty, Triplemint, and Mirador Real Estate all advised compliance. Agents have already begun conversations with landlords to protect their commissions by seeking to revise exclusive agreements and/or receive permission to increase asking rents.
NYTimes Op-Ed: Making Brokers Go Broke Isn’t the Solution, New York.