New York City Passes FARE Act, Freeing Tenants of Real Estate Broker Fees
FARE Act Becomes Law Despite Mayor’s Refusal to Sign
The FARE Act, which eliminates real estate broker fees and shifts the costs to landlords, has become law in New York City. The legislation was passed by the City Council on November 13 with a veto-proof majority and took effect 30 days later, as per the City Charter.
Background and Debate
The FARE Act aims to alleviate the financial burden on tenants when renting a new home. The law eliminates the need for tenants to pay real estate broker fees, which can range from several hundred to several thousand dollars. Opponents of the legislation argued that this would simply shift the burden to landlords, who may then pass on the costs to tenants in the form of higher rents.
Mayor’s Stance
Mayor Eric Adams spoke out against the FARE Act’s passage but chose not to sign it, citing concerns over potential rental increases. "Life will determine if I was accurate in my concerns if this goes into the rent of New Yorkers as they pay the rent," he said.
Council’s Response
City Council Speaker Adrienne Adams responded to the Mayor’s comments, calling the FARE Act’s enactment a major step towards improving affordability in New York City. She criticized the Mayor for "voicing last-minute opposition" despite the administration’s previous negotiations with the City Council.
Effectiveness and Timeline
The FARE Act will officially take effect 180 days after its passage, or around June 14, 2025. Once in effect, tenants will no longer need to pay real estate broker fees, saving them thousands of dollars upfront. On average, New Yorkers spent $13,000 in upfront costs, including broker fees, security deposits, and the first month’s rent, in 2023.
Conclusion
The FARE Act is a significant step towards improving affordability in New York City, and its passage is a testament to the City Council’s commitment to supporting working-class New Yorkers. As the law takes effect, tenants will no longer be burdened with upfront costs, allowing them to focus on finding a home rather than worrying about the financial implications.
FAQs
Q: What is the FARE Act?
A: The FARE Act eliminates real estate broker fees and shifts the costs to landlords.
Q: What is the goal of the FARE Act?
A: The goal is to alleviate the financial burden on tenants when renting a new home.
Q: What is the timeline for the FARE Act’s effectiveness?
A: The FARE Act will take effect 180 days after its passage, or around June 14, 2025.
Q: What is the average upfront cost for New Yorkers?
A: According to the City Council, the average upfront cost for New Yorkers is $13,000, including broker fees, security deposits, and the first month’s rent.
