RENTAL for 2200,hired an agent the agent had to go to the listing agent.both want 2200 fee? is that legal?

Asked by Marco, New York, NY Sat Feb 4, 2012

they both want to charge my dad the same fee why?? that doesnt include the owners first and last months

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18
Mitchell Hall, Agent, New York, NY
Sat Feb 4, 2012
Hi Marco,

The maximum broker fee should be $3960. 15% of 1 years rent. $2200 x 12 = $26,400 x 15% = $3960. If there are 2 brokers it should be split 50/50. When you or your Dad hired the agent to represent you as a tenant did they disclose who they represent? Did you and your Dad sign an agency disclosure form? Did your agent have you sign a rental agreement that specified the broker fee? Call or have your dad call he agents broker/manager.

Mitchell Hal, Associate Broker
The Corcoran Group
4 votes
Anthony Bell…, , New York, NY
Sat Feb 4, 2012
Be Prepared Tip- When going apt hunting with a broker please have your documents on hand . Also you should know the brokers fee if there one before you start . Another tip if the apt is the listings borkers Exclusive the split is usally 15 % annual rent or could be negotiated between the two brokers.....its not illegal. Back to to being prepared all documents are on hand the landlord and broker knows your serious. Also the landlord will take the first qualified and ready candidate. If your late in Manhattan you will lose that dream apt. So have the following copies -Letter of employment stating position and salary, Social Security card, Reference from current landlord, Driver's license, 3 recent payment checks, Last year's Tax return . The fee is one time either you or your Dad pay will pay owners first and last months rent . Buying an selling will talk another time.
Anthony Bellamy
Fenwick Keats Real Estate
C-646 322 9827
ABELLAMY@FKRealestate.com
2 votes
Arianna Dedes, , New York County, NY
Sat Feb 4, 2012
A brokers fee can be 15% of the years rent. Your fee should not be more than $3960. Did you sign an agreement with that rental agent? If so it should state how their fees work. They are doing a good thing by showing you everything that is on the market even if its not in there rental database. However, you should not be paying $4,400 in a brokers fee they need to split the $3960 50/50 that is was is normally done in New York. I hope this helps. If you end up feeling unhappy with your broker move on and find something else. Also, you can let them know your willing to pay 15% but nothing more.
1 vote
Lais Reid, , New York, NY
Sat Feb 4, 2012
It seems to me the listing agent isn't getting paid from his client(the owner) and is charging a fee. At the same time he might not be co-broking the listing which means your agent has to collect his own fee from you. If this is the scenario, which I hope it's not....your agent should've told you this in the beginning
1 vote
Ronnie Shuma…, Agent, New York, NY
Wed Apr 25, 2012
Marco,

There is a wealth of information in this thread. The standard is 15% of the annual rent.
Some agents are not sharing exclusives and in that case, some firms will ask something ridiculous like this.

The broker who SHOWED the apartment, if ethical, should adjust his fee to make sure the transaction still happens and you don't pay more than 15% of the annual rent or $3960.

I am sorry that one bad apple has spoiled the bunch in your mind and your father's I am quite sure at this point.
Being a good while later, I am very curious as to how this turned out for you.

Best regards,
RS
0 votes
Brian Moore, Agent, New York, NY
Tue Feb 14, 2012
It is not illegal, maybe a bit unorthodox, but I am not an attorney either.

You need to find out if an Agency Disclosure was signed by your father prior to searching with this broker. It is a state requirement an Agency Disclosure be submitted to client BEFORE SEARCHING & IT IS THE AGENTS DUTY TO DISCUSS ALL AGENCY RELATIONSHIPS TO THE CLIENT SO AS THEY UNDERSTAND to whom they (the agent) represents in the transaction. A Fee Agreement was to be signed as well, this states exactly what fee would be charged to your dad.

A typical Fee situation was well explained by Mitchell Hall below...I suggest contact the broker that he works with & you have the right to file a complaint to the real estate board as well.

Sorry you have had such a bad experience & do not judge all by this/these one/two agent(s).
0 votes
Raoul Sodoga…, Agent, New York, NY
Sun Feb 12, 2012
Marco,

Stop making a big complicated issue about this.

We all telling you what to do. And it is very simple:

Either you pay them what they are asking and your dad get the apartment he wants.
Or you get a new agent that that start a new research and you get something else.
Since the broker, your father hired is the one who contact the listing broker for your father, well the listing broker can't do rent to your father without your father's original broker. That's a fine and a possible license revoking at the REBNY. I'm sure he wouldn't risk that just for $2200.

Your father's original broker did his job by finding your father the apartment he is looking for. Without him, you or your father would struggle by yourself to find that specific good deal or will never find. So he deserved his broker fee.

Now the only mistake he made is by not disclosing exactly how the deal will go in case there is two brokers involved. Either he did, or you or your father didn't understand, well, it still go one way: your choice (you are the client).

Now choose to make a decision that will prevent you from not finding a deal like that. I don't know you or your father, but if you have a place for him to live at right now until he find an apartment, well it is up to both of you. If he is in the rush to move-in, just go ahead and rent it, pay the broker fees they are asking and make sure to never refer them to anybody you know.

If your father is not in the rush and you are willing to take the risk of never finding that kind of deal again, well take another broker and this time, listen carefully and ask all questions before starting working with them.

If you need more advices, you can contact me directly at raouls@nestseekers.com

Warmest Regards,

Raoul Sodogandji
Global Market Specialist
Licensed Salesperson

(o): 212.252.8772 (EXT.782)
(c): 347.593.9319 (Temporary)
(e): raouls@nestseekers.com
0 votes
Marco, Renter, New York, NY
Sun Feb 12, 2012
he hired 1 broker their fee was 1 month. now the broker that listed the rental wants the same fee. they are both trying the scam my dad. the broker my dad hired had to make an appt with another broker to see the place....i told him to just get rid of his broker, start over, since i guess going straight to the source of the rental is illegal with you guys.
0 votes
Joseph Hasti…, Agent, Bayside, NY
Sun Feb 5, 2012
Marco, the answer is NO. Unless I misunderstand, your Dad hired a broker for exclusive right to rent, yes? Who hired another agent? you? your Dad? Why?

The listing agent who has a contract with your Father (I hope so) should be splitting the commission to pay the other agent. End of story. Now, if there is something you've not said, I could be wrong. Is there anything in writing with the second agent that would allow him to ask for the full commission? Good luck.
0 votes
Lais Reid, , New York, NY
Sat Feb 4, 2012
Marco,
I think you've misunderstood what was said. You should not pay each broker a full fee of $3,960. That's the total fee that's supposed to be paid, and that gets split 50/50 between the two brokers. You or your dad need to read over your rental agreement again and make sure you're clear on the fees, also make sure who's representing you in this process. If you have any questions, feel free to inbox me. I hope all of this ends well for you.
0 votes
Marco, Renter, New York, NY
Sat Feb 4, 2012
so i guess i should give both of them 3960.....i said the broker gets 2200 for the comission... why is the listing asking for 2200 too???
0 votes
Therese L Ko…, Agent, Bayside NY 11361, NY
Sat Feb 4, 2012
Hi Marco- there are no set fees for listings or rentals...they are all negotiable. Could be that the set fee for this company was/is 2 months commission (1 for each agent) or same agent gets 2 mos. As mentioned below it is quite standard to co-broke. Terry K 718-614-3167 or email TKorahais@elliman.com
0 votes
James Furlong, Agent, Brookline, MA
Sat Feb 4, 2012
Check to see if your father signed a disclosure statement or any other agreement. That should tell him what conditions he accepted. If he signed nothing - move on and consider it a learning experience. It is getting a lot more difficult to rent with the small inventory available so costs do go up.
0 votes
Raoul Sodoga…, Agent, New York, NY
Sat Feb 4, 2012
It is legal. The standard fee is 15%, i guess both are just not honest because they are charging a lot more than the standard fee, but it is their call. 15% will be $3960 that they will split. You can't complain to nobody, all you have to do is not to rent the apartment: SIMPLE. This is the way all brokers work, now if you think you don't want to pay a broker, just don't hire him in the first place. Every service has to be paid. There is an agent for the owner and an agent for the renter: pretty standard. What exactly are you complaining about? Inbox



Warmest Regards,

Raoul Sodogandji
Global Market Specialist
Licensed Salesperson

(o): 212.252.8772 (EXT.782)
(c): 347.993.8333
(e): raouls@nestseekers.com
0 votes
Marco, Renter, New York, NY
Sat Feb 4, 2012
so my question is is it legal???????? he knows the fee is 2200 why would the listing agent charge 4400 to split it with the agent???? im confused ... can he complain to someone??make a complaint to a licensing bureau?
0 votes
Kathleen Bar…, Agent, New York, NY
Sat Feb 4, 2012
It's pretty standard in NYC to cobroke. In those cases the fee is 15% of annual rent & the agents split this fee.
0 votes
Marco, Renter, New York, NY
Sat Feb 4, 2012
so why are the both trying to charge my dad the same fee? even though he used 1 agent?
0 votes
James Furlong, Agent, Brookline, MA
Sat Feb 4, 2012
The two agents should share the fee - the term used is "co-broke".
0 votes
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