As of June 11, 2025, the NYC Fairness in Apartment Rental Expenses (FARE) Act is in effect. This law has a significant impact on how rental listings in New York City are marketed and how broker fees are disclosed and charged. OneKey MLS is committed to ensuring that brokers can continue to market and service their exclusive rental listings while remaining compliant with all applicable laws. Read on for frequently asked questions:
1. What is the FARE Act?
The Fairness in Apartment Rental Expenses (FARE) Act is a New York City law that:
- Prohibits broker fees from being charged to tenants when the landlord hires the broker
- Requires full disclosure of all tenant fees
- Allows enforcement through fines and private legal action
2. Which counties are subject to the FARE act?
Rental listings in Richmond, Kings, Bronx, New York, and Queens counties.
3. Does this apply to listings published via IDX or on third-party websites?
Yes. The FARE Act presumes that a broker publishing a listing (even through passive means, such as IDX) represents the landlord and therefore cannot charge the tenant a broker fee.
4. What kinds of fees must be disclosed?
- Application fees
- Credit/background checks
- Move-in/move-out charges
- Pet fees
- Lock or key charges
- Any other upfront costs required for the lease
4. When must these fees be disclosed?
- In the MLS listing (via Additional Fee Y/N, Additional Fee Amount, Additional Fee Frequency, and Additional Fee Description fields, if additional space is needed you may use the Remarks field.)
- In writing before lease signing, with the tenant's signature
- A copy must be retained for 3 years
5. Are fees and compensation the same?
No.
Fees = Tenant costs to lease the unit (must be disclosed)
Compensation = Payment to agents (must not be mentioned in listings)
6. How should I enter NYC rental listings in OneKey MLS to comply with FARE?
Select N in the Internet field in the Syndication section of the listing.
Use the applicable fields (Additional Fee, Additional Fee Amount, Additional Fee Frequency, Additional Fee Description) to disclose all fees paid by the tenant fully.
7. Can tenants voluntarily pay a landlord’s broker fee?
No. Tenants cannot waive their rights under the FARE Act. Landlord’s agents may not collect fees from tenants.
8. Can a tenant’s broker be compensated?
Yes, if the tenant hires the broker directly and a compensation agreement is in place.
9. What about dual agency or team-based representation?
Dual agency is permitted only with informed consent from both parties. DCWP is reviewing implications for designated agency scenarios.
10. What are the penalties for non-compliance?
- Fines up to $2,000 per violation
- Risk of private legal action
-
Listing removal or broker discipline
11. Where can I find additional information and resources?
Additional resources may be found by referencing the NYC DCWP Resource.
Please contact your association’s legal counsel for additional information. You can reach the LIBOR Legal Support Center at 631-661-4800, extension 335, or HGAR Support at 914-681-0833, and press 2.
Stay tuned for additional information regarding upcoming OneKey MLS changes to forms, displays, searches, and listing entry and edit.
12. What system updates have happened as a result of the FARE Act?
All affected listings have had the internet Y/N field set to N, removing them from IDX feeds. Consequently, these listings are no longer syndicated to third-party sites or displayed on the Onekey consumer site, OneKeyMLS.com.
OneKey has added notice to our rental Listing Management system as reminders about FARE compliance.
13. What is OneKey MLS doing next?
- Issuing updates on compliance guidance and FAQs as applicable.
- Working with vendors to update IDX display rules and disclaimers.
- Seeking clarification from NYC DCWP on passible publishing mechanisms like IDX.