- Glossary
- /FARE Act
NYC rental glossary
FARE Act
A 2024 NYC law shifting the broker fee to the party who hired the broker — in most listings, the landlord.
The Fairness in Apartment Rental Expenses (FARE) Act is a New York City law, effective in 2025, that bars a broker from charging a tenant a fee for a listing when the broker was hired by the landlord. The statutory default is that the party who engaged the broker pays — so in the typical landlord-listed apartment, the landlord owes the fee, not the renter.
A tenant can still owe a broker fee where the tenant retained the broker directly, or under a written agreement that allocates the cost; outside those cases, charging the renter is prohibited and must be disclosed up front. The law also requires fee disclosure in listings.
For a brokerage, the FARE Act turns "who paid the broker fee" into a compliance fact that should be captured at the close of every deal, with a written agreement on file whenever the tenant pays. Urbero records the fee-payer on each finalized deal and gates any non-landlord-paid value behind an explicit acknowledgment.
See it in the product
Fee-payer tracking in dealsRelated terms
- Broker FeeThe commission paid to a rental broker — now, under the FARE Act, owed by the party who hired the broker.
- Net Effective RentThe average monthly rent after spreading a concession (free months) across the lease term — lower than the gross rent.
- ConcessionA landlord incentive — usually free months — that lowers a tenant’s effective rent without cutting the face rent.
- Housing CourtThe NYC court that hears landlord-tenant disputes — evictions, repairs, and warranty-of-habitability claims.
This definition is general information about a New York City rental or rent-regulation concept, not legal advice. The rules change and often turn on facts specific to a building, unit, and tenancy — confirm the current rule and consult a qualified attorney before acting on any individual matter.