Hello all, I have a question regarding a shady broker who is demanding a fee from me for my rental. I realize not all brokers are shady, but the way this guy went about business is appalling. We kept trying to call rental OWNERS rather than brokers. Every time, without fail, it was a bait and switch where the "owner" listing was actually a broker. In this case, decided to call a NO FEE building.... [more]
Hello all,
I have a question regarding a shady broker who is demanding a fee from me for my rental. I realize not all brokers are shady, but the way this guy went about business is appalling.
We kept trying to call rental OWNERS rather than brokers. Every time, without fail, it was a bait and switch where the "owner" listing was actually a broker.
In this case, decided to call a NO FEE building. The number on the listing stated it was the official number for the listing, but it was actually a broker's cell phone. He told me to meet him at that building, but when I got there, he told me to meet him at another building instead. He proceeded to show two apartments (not the no fee apt that I called him about), one of which I took. Still no mention about any fee, and he even took off before showing the apartment that I took. Instead, the landlord came and showed it to me, and eventually his friend/business partner showed up as well.
Told the second guy we had a cat. "No problem" he says. Asked him what we need to bring to the signing in the morning... security deposit and first month's rent, he says. No mention about any fee.
Show up and sign the lease the next day... landlord does not allow pets. Work out a deal with landlord where we pay $600 extra deposit for the cat. Fine... we sign the lease, and everything is great (aside from my being pissed at the broker).
After the lease is signed, broker says, "Oh, we have one more thing to settle. The broker fee." My jaw hits the floor. WHAT FEE? He pulls out his calculator and says we owe him $3700. F@#@ that! Backed into a corner, I end up cutting a check for $2300.
After getting home, thinking about how he never disclosed a fee, and looking at real estate law (and consulting lawyers), decide to put a stop payment on the check. Where I come from, landlords pay any fees to brokers, not tenants, so how can he assume that we know he is going to charge us $4k (wtf?) as a random fee.
Now he has blown up my phone, showed up at work, blown up my email, and is not threatening to take me to small claims court.
Does this dbag have a leg to stand on?
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Response by greensdale
almost 13 years ago
Posts: 3804
Member since: Sep 2012
There was a thread last weekend Broker demanding fee on No-Fee Apt
What happened to that?
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Response by Mikev
almost 13 years ago
Posts: 431
Member since: Jun 2010
Easy question, did you ever sign a piece of paper with this broker stating that you will pay him a fee? If the answer is no then why would you ever cut a check? either way you just have to calm down and see what the broker does, your only other alternative is to threaten to report him where he may feel his license is more important.
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Response by yikes
almost 13 years ago
Posts: 1016
Member since: Mar 2012
the only doc in the case will be the chk you wrote, which indicates that, at some point in the process, you agreed to give him that money.
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Response by Sonya_D
almost 13 years ago
Posts: 547
Member since: Jan 2013
greensdale,
Heh, I guess we know what "happened to that" now, don't we? ;)
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Response by statik
almost 13 years ago
Posts: 3
Member since: Aug 2010
Sounds really shady.
Agreed with mikev. What did you sign? If nothing, and you feel blindsided, then as they say - "Fuck This Noise"
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Response by BertaNY
almost 13 years ago
Posts: 65
Member since: Oct 2009
Call REBNY and the landlord and explain the shennanigans of this individual. You might even want to go to the Police dept. for the harassment at work.
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Response by gcondo
almost 13 years ago
Posts: 1111
Member since: Feb 2009
go to court, BFD. see what happens.
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Response by front_porch
almost 13 years ago
Posts: 5316
Member since: Mar 2008
without endorsing this kind of behavior, my question is: is the broker mentioned in the lease? In most of the standard forms, there's a place for the broker to be mentioned (for example, on the Blumberg a-101 for condos, it's near the top) and if he's written in, I think you'll have a tougher time pursuing a claim than if he isn't.
disclosure that I'm not a lawyer though.
ali r.
DG Neary Realty
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Response by Broker212
almost 13 years ago
Posts: 0
Member since: Mar 2011
If you rent an apartment in NYC with a broker, you're probably going to have to pay a Broker's fee.
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Response by greensdale
almost 13 years ago
Posts: 3804
Member since: Sep 2012
Who is ultimately responsible for the brokerage fee if there is one? Is the tenant only responsible by virtue of agreeing with the landlord to take it on (and hence why it has to be written into the lease) - is the landlord responsible if the tenant fails to pay?
Or is the tenant actually directly responsible to the broker, in which case there should be an agreement between the tenant and the broker? If they go to court, what documents will the broker provide as evidence of the tenant's financial responsibility for paying?
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Response by Mikev
almost 13 years ago
Posts: 431
Member since: Jun 2010
Last time I went through this process I had to sign a piece of paper with the broker agreeing to give them a fee if I signed on an apartment they showed, however this becomes null if the landlord is covering the fee.
I was told by a broker in a building that was covering the fee that the biggest issue they found was that brokers were still demanding money from the renter even though they covered the fee, therefore they were getting double the fee. She told me that she spent a lot of time when meeting with prospective tenants attempting to make it clear that they were paying the fee to the broker. This was a conversation that occurred because of work I was doing and not that I was renting at this building.
I will tell you that when I rented out an apartment that the deal you sign with the broker is that you will let them have exclusive rights to rent out the apartment and then they will collect the fee from the tenant. There is no fallback that I am responsible if they fail to pay.
In this case as was pointed out the only problem was that @aloha actually gave in and wrote a check which makes it appear that there may have been some sort of agreement even if it was verbal. Had he done nothing and the broker had nothing in writing and then @aloha showed the ad that made it clear it was supposed to be no fee, the broker would have a very hard time proving any sort of failure to pay.
I am not a lawyer and who knows whether the broker will waste time and try and get the fee knowing he is in the wrong, however it is small claims court and it does not cost much to attempt to collect.
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Response by greensdale
almost 13 years ago
Posts: 3804
Member since: Sep 2012
Did Jim Hones delete his post following mine that cursed me out - it disappeared.
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Response by glamma
almost 13 years ago
Posts: 830
Member since: Jun 2009
$600 for a f*cking cat?
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Response by Sonya_D
almost 13 years ago
Posts: 547
Member since: Jan 2013
Hah, yes, ol' Jimmy boy seems like his posts have been removed! Like it says, this gets shadier and shadier...
So yeah, that money is probably gone. Had aloha23 not written the check to begin with, he wouldn't have a leg. aloha23 can try to file something, but in the end is probably not worth it.
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Response by greensdale
almost 13 years ago
Posts: 3804
Member since: Sep 2012
>Jimmy boy seems like his posts have been removed!
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There was a thread last weekend Broker demanding fee on No-Fee Apt
What happened to that?
Easy question, did you ever sign a piece of paper with this broker stating that you will pay him a fee? If the answer is no then why would you ever cut a check? either way you just have to calm down and see what the broker does, your only other alternative is to threaten to report him where he may feel his license is more important.
the only doc in the case will be the chk you wrote, which indicates that, at some point in the process, you agreed to give him that money.
greensdale,
Heh, I guess we know what "happened to that" now, don't we? ;)
Sounds really shady.
Agreed with mikev. What did you sign? If nothing, and you feel blindsided, then as they say - "Fuck This Noise"
Call REBNY and the landlord and explain the shennanigans of this individual. You might even want to go to the Police dept. for the harassment at work.
go to court, BFD. see what happens.
without endorsing this kind of behavior, my question is: is the broker mentioned in the lease? In most of the standard forms, there's a place for the broker to be mentioned (for example, on the Blumberg a-101 for condos, it's near the top) and if he's written in, I think you'll have a tougher time pursuing a claim than if he isn't.
disclosure that I'm not a lawyer though.
ali r.
DG Neary Realty
If you rent an apartment in NYC with a broker, you're probably going to have to pay a Broker's fee.
Who is ultimately responsible for the brokerage fee if there is one? Is the tenant only responsible by virtue of agreeing with the landlord to take it on (and hence why it has to be written into the lease) - is the landlord responsible if the tenant fails to pay?
Or is the tenant actually directly responsible to the broker, in which case there should be an agreement between the tenant and the broker? If they go to court, what documents will the broker provide as evidence of the tenant's financial responsibility for paying?
Last time I went through this process I had to sign a piece of paper with the broker agreeing to give them a fee if I signed on an apartment they showed, however this becomes null if the landlord is covering the fee.
I was told by a broker in a building that was covering the fee that the biggest issue they found was that brokers were still demanding money from the renter even though they covered the fee, therefore they were getting double the fee. She told me that she spent a lot of time when meeting with prospective tenants attempting to make it clear that they were paying the fee to the broker. This was a conversation that occurred because of work I was doing and not that I was renting at this building.
I will tell you that when I rented out an apartment that the deal you sign with the broker is that you will let them have exclusive rights to rent out the apartment and then they will collect the fee from the tenant. There is no fallback that I am responsible if they fail to pay.
In this case as was pointed out the only problem was that @aloha actually gave in and wrote a check which makes it appear that there may have been some sort of agreement even if it was verbal. Had he done nothing and the broker had nothing in writing and then @aloha showed the ad that made it clear it was supposed to be no fee, the broker would have a very hard time proving any sort of failure to pay.
I am not a lawyer and who knows whether the broker will waste time and try and get the fee knowing he is in the wrong, however it is small claims court and it does not cost much to attempt to collect.
Did Jim Hones delete his post following mine that cursed me out - it disappeared.
$600 for a f*cking cat?
Hah, yes, ol' Jimmy boy seems like his posts have been removed! Like it says, this gets shadier and shadier...
So yeah, that money is probably gone. Had aloha23 not written the check to begin with, he wouldn't have a leg. aloha23 can try to file something, but in the end is probably not worth it.
>Jimmy boy seems like his posts have been removed!
But petrfitz has rejoined the board.
Potato, potahto.
;)