Rental Basics in New York>Question Details

Kareem, Renter in New York, NY

Do I owe the Broker fee?

Asked by Kareem, New York, NY Tue May 25, 2010

I have seen an apartment and tried to call management but could not connect to them.
After two days,When an agent asked me to come to see an apartment, I found the place is very near to above mentioned apartment.
I called the management company again and made an appointment. By that time I was not aware that which apartment the agent will show me. The managment company told me all the details including rent over the phone and I took the appointment.

I decided to see the apartment shown by the agent first. Later I found that he shown me the same apartment. He also told me the rent, which was higher than the management company told me. I also signed on some paper that he has shown me some apartment.
There was no other details mentioned about address of the property, rent, agent fee, etc. I didn't tell him that I have already talk with the management.

After that I went to management company and signed the lease.
After 3 hours Agent called me and told that there is a change in

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you don't need to pay a cent when looking fro no broker fee apartments.
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0 votes Thank Flag Link Wed Aug 4, 2010
The fact that you had the agent show you the home is a gray area. If you had explained to the agent that you had called the management company then the agent would have had to option to tell you to follow thru on that. But since he did show you the property you would be liable for his fee if you rent the apartment. I would speak with the agent to see if something could be worked out or if the management company would pay the finders fee.
0 votes Thank Flag Link Wed May 26, 2010
Thanks Guys for all the responses..
I am not at all aware of the rental laws and first time looking for an apartment in states.
I dont know where does he got the rental quotes from and how does it works. All I knew that by the time he told me rent I knew its lesser than that as I already discussed with the management company.

I don't have any problems in paying the any fee he mentioned if its ethically and professionally I really owe him.. ......Which I am not able to understand still :-$
0 votes Thank Flag Link Wed May 26, 2010
Kareem......What are you thinking ?
0 votes Thank Flag Link Wed May 26, 2010
"-and still very unclear as to why the different monthly rent quotes"

A question perhaps for the Agent or whoever placed the amount on the MLS or the Management Co...

In my opinion not a Question the Client should responsible for answering.....
My Question would be why would any consumer who is "on the fence" about using or trusting Agents that reads this discussion decide to use an Agent?

"Therefore, shame on you for not knowing that the agent need not discuss commission with the lessee. The commission is none of the lessee's concern.
What do YOU do for a living?"

LOL...Trulia isn't a Lead's a Lead De-Generator...

Rock on Pros
0 votes Thank Flag Link Wed May 26, 2010
Generally in NY the tenant pays the commission fee unless otherwise stated that the landlord will cover commission and that fee is generally based on the negotiated final rent amount--yes, if the agent did not discuss the commission, he/she should have-- before even showing the unit--and still very unclear as to why the different monthly rent quotes and by how much, etc.
0 votes Thank Flag Link Wed May 26, 2010

Where in this did you get it was the Management Co. that jacked up the Price? It was the Agent who quoted a Higher Price and the Agent who did not make Fees Commission cost clear......based on the info provided here

So the only responsibility an Agent has is to look at the price on the MLS, show the Rental and then get paid...No need to discuss Fees or Commission..Yeah I'm gonna rush out an use an Agent now ;)

Kareem...A big......... HOW DARE YOU!!!!!!!!! you it seems
0 votes Thank Flag Link Wed May 26, 2010

I still fail to see why the "Client" has any need to be "upfront" that they know the actual Rent amount...(Would that knowledge not help a Client determine if an Agent is being "upfront" Honest/Trustworthy?

The most important point in my opinion is IT IS THE AGENT that has the Burden of being upfront about Fees/expenses and to sure they are understood by anyone they intend to charge a fee or commission before signing any papers or showing any rentals/properties?

Is that not the Truth?
There was no intent to deceive, mislead or cheat the Agent here (In fact the client still used the Agent even though they knew the rent and had already talked to the Management co. and as a courtesy or to be fair still went with the Agent to look at a Rental not knowing it was the same one, not even aware of any necessity to be "upfront")........ but the actions of the Agent?
If they did not make fees and commissions "upfront" before the signing of papers or showing the Rental then I don't care if GOD or the MLS was the source of the Rent amount they quoted, they did not do their job IMO....
0 votes Thank Flag Link Wed May 26, 2010
Hi Dunes,
The missing detail here is where did the agent come up with the rental list price--if the agent quoted the MLS listing price, he/she did his/her job and not sure why management would have a different number to begin with, and was management aware that an agent was involved--both parties could be at fault here, and yes, the one that suffers is the client; but it appears that no one was upfront with anyone from the very beginning--
0 votes Thank Flag Link Wed May 26, 2010
Hi Alan,
If the agent quoted the MLS listing price as he/she should have done, he/she did his/her job--what is unclear is why management would have a lower price to begin with, unless they quoted less in order to avoid negotiating. Therefore, the agent may be the procuring cause--and we do have missing details, how was it left with the agent after the showing, were offers discussed, etc.
0 votes Thank Flag Link Wed May 26, 2010

I think the one who should be told they shoulda been upfront is the Agent.....
The Agents supposedly has some type of obligation to be upfront don't they?

Why does the
Client have an obligation to tell the Agent they already know the Rent the Management company wants?
The only reason in this scenario for that I can think of is so the Agent can be warned in advance that this time they need to be upfront about fees/commissions ect...
It appears the AGENT withheld the more important info....Cost to the Client!!!!!!

My Opinion...If everything you've said is true then have nothing to do with that Agent, if the Agent bothers you in any way then do whatever is necessary to force them to stop..Talk to their Broker, the management company, take out an ad in the local paper, file complaints, stand in front of their office and tell every passerby what happened...Do whatever it takes..

Until Agents like that one are weeded out of the Industry it will always be thought of by many as an Industry full of Dishonest Agents just out to make a easy buck..
Right or Wrong that's what people will think because when an Agent act that way other Agents will suggest YOU handled it wrong...

If your story is factual then YOU did nothing wrong...period
0 votes Thank Flag Link Wed May 26, 2010
@ Anna - it seems to me, since the agent quoted her a higher monthly rent, she didn't accept his lease, she took a different one.

Would she still owe commission? It sure doesn't sound like the agent was working on her behalf if he inflated the rent to include his commission.
0 votes Thank Flag Link Wed May 26, 2010
Alan May, Real Estate Pro in Evanston, IL
More than likely you signed a NYS Agency Disclosure Form for your agent--you really should have been upfront with the agent, by letting him/her know you were or were trying to work with management directly--and since he/she showed you the apartment first, the agent may have a procuring cause and commission fees may apply.
0 votes Thank Flag Link Wed May 26, 2010
This is a tough one as you did not mention what is the content of the paper you signed that the agent presented you with, Barring that if you were shown the apt by the management company prior to the agent showing it to you then you are not at fault expect you should have told the agent you already saw that apt., different states havedifferent laws on rentals
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0 votes Thank Flag Link Tue May 25, 2010
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