Ban on broker fees on hold for now, judge rules
NEW YORK (WABC) -- New York's real estate industry is fighting back against a ban on broker fees in New York City.
On Monday, the industry filed a lawsuit against the state. Then, a judge issued a temporary order, stopping a major change in brokerage fees from taking place - at least for now.
Regulations passed months ago would have effectively freed tenants from broker fees connected to apartment listings.
Now, tenants will have to keep paying broker fees at least until the state responds in March.
On Wednesday there was an unexpected upheaval in New York City's housing market when the surprise broker fee ban was announced.
State housing regulators slipped the ban into a reform package that went into effect in September of 2019, however, after receiving many questions, the Department of State provided updated guidance that went into effect on Jan. 31. The news was a bombshell for landlords and brokers.
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