So I went to see this apartment recently which I found on Zillow, and I’m really interested in renting it.
The broker tries to pull one on me asking for a $2K “good faith deposit” plus a $50 application fee. After calling it out we agreed I’d only pay the standard $20 fee.
Now that I’m filling out the app form and that I sent all my documents, he says I need to sign the “disclosure form” which at first he filled out as “tenant’s agent”. Then, when I questioned it, he changed it to dual agency stating that he was representing both me and the landlord but that’s it, no further explanation.
What should I do? Shouldn’t the form be under landlord only? Or is this fine since there is no deposit involved?
This guy is tricking you into paying him a broker fee.
How though? Since I refused to pay the good faith deposit.
By making you sign a contract saying they are your agent.
You only owe a broker fee if you hire a broker, and this sounds like it's saying you are hiring them to represent you.
He did email me that it’s not a contract though, and that it’s just for him to legally state his role. Could he still charge me a fee after stating this?
I don't know 100%, but signing a document agreeing that someone is representing you sounds like a contract.
There are other kind of similar sounding agreements that are sometimes involved that state you won't rent this apartment from another broker, but that's not what this sounds like.
Before you sign anything, call him out on this and clarify that the broker represents only the landlord, and you are not going to owe this broker any type of fee.
He replied that Brokers fees are only paid by the person that hired him - the landlord and that representation is a different thing. Then stated again that the form is not a contract
Huh. ok then, as long as they're clear that the LL hired them first and dual agency puts no responsibility on you, then it seems legit.
What they're referencing is a New York State disclosure form, which famously says "THIS IS NOT A CONTRACT" at the top of it
Whether or not this agent is just an idiot, or trying to illegal charge the OP a fee, is a bit unknown from what the OP has said so far.
OP could just refuse to pay any broker fees that are not $20 application fees, 1st months rent, and 1 month security. If the broker is advertising the apartment, which it sounds like they were, they can not legally charge a fee regardless of what the OP signs.
But, as I'm sure you know, many of these brokers have never let the law stop them from doing something dumb and illegal
Those 2 things are completely different to one another. Good faith deposits are illegal, by the way, and the broker knows this. Did the broker state you have a financial obligation -ie splitting brokers fee - in this "dual agency" disclosure agreement? If so, this may be illegal too since you didn't hire him.
No, he actually said that I wouldn’t owe anything and that any brokers fee is paid by the landlord only.
He is lying.
Then it makes no sense for him to present this document to you because, in real estate terms, "dual agency" means he represents both parties, which is also called double dipping because they're entitled to a commission from both parties. Just make sure it's in writing that you don't owe any portion of the brokers fee and the disclaimer spells it out too.
Well it is required by law in NYC for brokers to provide this form
No, it’s not. When I’ve rented an apartment by a broker who was paid the fee by the landlord I didn’t sign anything with the broker. This broker has already tried to steal money from you by asking for a good faith deposit, which is illegal. Why are you entertaining this broker? They are shady and trying to trick you into hiring them so that you owe them a fee.
That they're working for the landlord, yes, but not that it's a dual agency if it's not. TBH, this knucklehead has tried to slip 2 shady illegal things past you. If you wanna stick with him then that's on you. Get it in writing is alls I'm saying.
let me guess how you know that… he told you that too?
No I looked it up. I’m conflicted because he said via email that this wasn’t a contract and that any broker fee would be paid by the landlord.
No it’s not, I just rented an apartment and didn’t have to sign anything with a broker. The only thing I signed was a lease with my landlord that the broker sent.
I think it may shock you how few brokers actually know this, or even so, accept it
These disclosure forms do not address fees, by nature
Stop working with this broker.
he's scamming you
walk away
File a complaint about the good faith deposit and broker contract: https://www.nyc.gov/site/dca/consumers/file-complaint.page
That broker shouldn't be in business.