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Hello, I recently looked at an apartment in Park Slope that has a broker’s fee. I really liked the apartment and immediately put down $650 as a deposit to show the landlord I was interested. This was effectively a portion of the total broker’s fee, due at lease signing. If the landlord rejected my application, I would get this amount refunded, if I was chosen, this would go towards my broker’s fee. I signed a application contract stating all of this.

For my own reasons, I have opted to not move in. (My boyfriend has been unexpectedly been accepted to school abroad and I would go with him.) I am withdrawing my application which I wasn’t quite finished with anyway (I had not yet provided the guarantor information that was requested) and the broker is telling me that I am not eligible to receive my deposit back. I’ve looked closely at the application contract that I signed when I put down the deposit, and the fine print about the deposit does say, if the applicant (me) decides not to continue with the application, the deposit is “unreimbursed.”

I’ve looked more closely at the legalese behind this now, and the NYC Rent Guidelines Board website says “The fee should not be paid until the client is offered a lease signed by the landlord. The broker may also charge the client a reasonable amount to conduct a credit check.” (See http://www.housingnyc.com/html/resources/attygenguide.html#32 )

SO – I have learned my lesson about reading the fine print! But what should I do? It seems to me that according to rental law a broker’s fee should not be collected until I sign a lease. (That’s the assumption I had when I put down this deposit – that if I didn’t go through with signing, I wouldn’t be out $650.) The document I signed does stipulate that my deposit in this scenario should be “unreimbursed,” but doesn’t that appear to contradict rental law?

I want to resolve this quickly and without a lawyer, since I couldn’t afford to pay more than I already might lose here. I’m curious to hear your thoughts! Please don’t tear me apart, I know my follies here. Thanks.