A New York State judge on Monday temporarily blocked the state’s week-old ruling that had effectively barred tenants from having to pay a broker fee, according to the NYTimes.
- Bottom line: Brokers can continue to collect a commission from tenants for rentals. The decision is expected to stay in place until at least March 13.
- Dig Deeper: The “restraining order” allows both sides to present a case, and does not necessarily foreshadow that the broker fee ruling will be blocked for good. In their suit, Real Estate groups argued that the ban on broker fees never came up last year as part of the sweeping rent laws adopted by the state Legislature and that the Department of State was effectively imposing a new rule without giving their industry a chance to weigh in.
- Heard on the Street: Damage has already been done… Douglas Elliman’s Hal Gavzie: We are currently working on hundreds of current rental transactions in which potential tenants are now threatening not to close the transactions and are refusing to pay commissions.”