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Posted by Gere on July 29, 2001 at 16:47:18:

In Reply to: Re: Overcharge for broker fees and deposit posted by Lilly on July 29, 2001 at 01:49:13:

: I admit I haven't looked into this too carefully, but I based my assumption that the owner collecting any part of the broker fee, even when paid by the broker as a separate entity, was an overcharge on an ORA decision (BELMONT REALTY COMPANY & DOUGLAS K. SWISS) I saw on this site. That decision states:

“It is the established position of the Division as well as the predecessor Conciliation and Appeals Board, and the courts have affirmed that the collection of a brokerage fee by an owner or one
associated with the owner constitutes an evasive practice in violation of Section 62A of the former Rent Stabilization Code. Based upon the above cited evidence the Commissioner finds that this portion of the Rent Administrator's order is correct and should be affirmed.”

That case may have been a little more clear cut since the owner-broker were father-daughter or something and shared the same phone number, but the same principle (i.e. a LL getting more than he is entitled to from the rental of an apartment) would seem to be involved.

I'm not saying I was necessarily penalized financially only that the LL violated the code. If a LL could be legally entitled to a broker fee simply by getting a broker's license, I don't see why they wouldn't do this and keep the entire fee for themselves....?

I also think my broker had a conflict of interest in my case and breached his duties as my agent, but those are really separate issues.

: That's ok IF the Landlord has a brokers license. In that case it would be considered a co-broke. New York State Dept of State web site- you'll be able to check to see if LL has a brokers license .IF LL is not a broker, then it still isn't an overcharge issue. It would be the broker you paid splitting the commission with a non-broker-forbidden for a broker to do that-in any event you had to pay your broker anyway, just under whatever circumstances the commission was split, legally or illegally. It sounds like the $$ would be the same in any case.

: For a rent stabilized apt it is illegal to charge, demand, receive a security deposit equal to more than 1 months rent.

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Comments:
: : I admit I haven't looked into this too carefully, but I based my assumption that the owner collecting any part of the broker fee, even when paid by the broker as a separate entity, was an overcharge on an ORA decision (BELMONT REALTY COMPANY & DOUGLAS K. SWISS) I saw on this site. That decision states:

: “It is the established position of the Division as well as the predecessor Conciliation and Appeals Board, and the courts have affirmed that the collection of a brokerage fee by an owner or one
: associated with the owner constitutes an evasive practice in violation of Section 62A of the former Rent Stabilization Code. Based upon the above cited evidence the Commissioner finds that this portion of the Rent Administrator's order is correct and should be affirmed.”

: That case may have been a little more clear cut since the owner-broker were father-daughter or something and shared the same phone number, but the same principle (i.e. a LL getting more than he is entitled to from the rental of an apartment) would seem to be involved.

: I'm not saying I was necessarily penalized financially only that the LL violated the code. If a LL could be legally entitled to a broker fee simply by getting a broker's license, I don't see why they wouldn't do this and keep the entire fee for themselves....?

: I also think my broker had a conflict of interest in my case and breached his duties as my agent, but those are really separate issues.

: 
: : That's ok IF the Landlord has a brokers license. In that case it would be considered a co-broke. New York State Dept of State web site- you'll be able to check to see if LL has a brokers license .IF LL is not a broker, then it still isn't an overcharge issue. It would be the broker you paid splitting the commission with a non-broker-forbidden for a broker to do that-in any event you had to pay your broker anyway, just under whatever circumstances the commission was split, legally or illegally. It sounds like the $$ would be the same in any case.

: : For a rent stabilized apt it is illegal to charge, demand, receive a security deposit equal to more than 1 months rent. 


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