Fairness in Rental Expenses Act (“FARE”)
On November 13, 2024, the New York City Council passed The Fairness in Apartment Rental Expenses Act (“FARE”). After being constitutionally challenged in Federal Court, FARE took effect on June 11, 2025. The FARE Act will have a dramatic effect on all residential lease transactions within New York City. Currently, FARE does not apply outside of New York City. The most important impact of FARE is that the responsibility of paying broker fees shifts from renters to landlords for apartments where the landlord hired the broker.
Prior to the implementation of FARE, unsuspecting tenants were often obligated to pay broker fees to a broker they did not hire or have any type of relationship with. Even if a tenant did not want to work with a broker, tenants really had no choice, as the apartments required tenants to pay the broker fees.
Prior to FARE taking effect, The Real Estate Board of New York challenged the Act’s constitutionality in Federal Court under Real Estate Board of New York, Inc. v. The City Of New York, 1:24-cv-09678, (S.D.N.Y.). The Court ultimately held that “Plaintiffs’ discontentment with the Act, however, stems not from its effects on their constitutional rights, but from a fundamental disagreement with its underlying policy.”
While the new law only impacts New York City, New York State could follow suit and enact a similar law. Check back for more FARE updates.
For more updates on The FARE Act, please call J. P. Robinson Law at (914) 265-3179 or email at Justin@jprobinsonlawllc.com.
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