T
he Real Estate Board of New York (REBNY), represented by Hogan Lovells, is challenging New York City's broker fees ban in federal court. The ban, which prohibits brokers from passing their fees to tenants, will allegedly "effectively eliminate" brokers' rights to advertise open properties and raise rents.

    In a lawsuit filed with the Manhattan federal court, REBNY argues that the Fairness in Apartment Rental Expenses Act encroaches on brokers' free speech rights. The group claims that without the ability to pass their fees to tenants, they will be unable to effectively market properties, leading to increased costs for landlords and ultimately higher rents.

    The case is a significant development in the ongoing debate over broker fees in New York City's real estate industry. REBNY has long argued that brokers play a crucial role in facilitating transactions and providing valuable services to both landlords and tenants. By challenging the ban on broker fees, the group aims to protect its members' interests and ensure that they can continue to operate effectively in the city's competitive market.

    The lawsuit is a key test of the Fairness in Apartment Rental Expenses Act, which was enacted to help alleviate the financial burden on tenants who are often forced to pay brokers' fees as part of their rent. The outcome of the case will have significant implications for the real estate industry and could potentially impact the way that broker fees are structured in New York City going forward.