DOS Guidance Prohibits Certain Real Estate Commissions

The DOS has issued a Guidance interpreting the Housing Stability and Tenant Protection Act to hold that landlord’s agents cannot be compensated by the prospective tenant.  The DOS Guidance notes that a landlord’s agent who collects a broker’s fee from the tenant can be subject to discipline by the DOS.

NYSAR is involved in speaking with the DOS to obtain further clarification on this issue. Until then, a brokerage that has an agency relationship to the listing and the landlord, cannot collect a commission from the tenant.

DOS-Guidance-Tenant-Protection-Act-Rev.1.31.20

Please direct questions related to this issue and the attached DOS Guidance to NYSAR’s Legal Helpline Monday – Friday from 9 a.m. to 4 p.m. at 518/436-9727.