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s the City Council prepares to vote on the Fairness in Apartment Rentals Act, or FARE, the Real Estate Board of New York has quietly pitched its own version of a broker fee bill. REBNY's proposal doesn't change who pays the commission, but instead requires agents to provide prospective tenants with a "tenant bill of rights." This document would outline a tenant's options and responsibilities when signing a lease, including their right not to work with a broker and the fact that compensation for brokers is negotiable.

    The REBNY bill also mandates written fee agreements between tenants and brokers in cases where tenants are responsible for paying the commission. However, it does allow property owners or government entities to pay the broker fee on behalf of a tenant. City Council Speaker Adrienne Adams has expressed support for some form of the FARE Act, but her exact position remains unclear.

    Council member Chi Ossé's original bill would require whoever hires a broker to pay the commission, and he recently revised it to add fines for non-compliance and expand the definition of "hiring" a broker. Opponents argue that this doesn't reflect market reality, while REBNY claims that owners will simply pass costs onto tenants by raising rents or avoiding brokers altogether.

    The FARE Act has gained support from 33 Council members, but only needs 26 to pass. Mayor Eric Adams has expressed concerns about the bill's impact on small property owners, saying he wants to find a way to distinguish between struggling mom-and-pop owners and larger companies that can absorb the costs. The mayor is still reviewing the legislation and considering his next steps.