Broker Fee PRIOR to Lease Signing?
I just recently made a deposit on an apartment I REALLY liked in Crown Heights. In working with the buildings brokerage company, they just told me that 1. I would need to provide them with a cashier’s check for the full brokerage amount 2. They would then provide me with a check and verification paperwork…
I just recently made a deposit on an apartment I REALLY liked in Crown Heights. In working with the buildings brokerage company, they just told me that
1. I would need to provide them with a cashier’s check for the full brokerage amount
2. They would then provide me with a check and verification paperwork and send me to the landlord to sign the lease with him directly
When I expressed concern with providing them money without a signed lease in my hand, they became verbally aggressive and told me it was THEIR protocol that it happen this way.
I told them I had a cashiers check all ready, and could fax them a copy of the check, but that I didn’t feel safe as a consumer having all of my $ to them in cash/cashiers check and not have a lease and/or keys in my hand.
When they offered to send the leasing agent to the lease signing with myself and the landlord, I was please and said that would be fantastic. They then stated that the agent would not be staying for the signing, and she would just meet me there and leave.
I’m feeling like:
1. If they wanted my money so bad, wouldn’t they want to speed this process up
2. Isn’t it protocol to have the leasing/broker agent to have the lease paperwork available at the time the broker fee is paid
3. If the broker does not have the lease themselves, wouldn’t they want to be present during the transaction?
I’m feeling very put off by this company, and am terrified of being scammed. This may be a transaction to them, but it’s my total savings and possible homelessness at stake.
What do you all suggest I do? Am I doing the right thing standing my ground on requiring the leasing agent to be present for lease signing, and not handing over what is good as cash prior to having a signed lease?
sounds fishy run for it.
Absolutely, RUN don’t walk away. At a lease signing the checks for security, rent and broker all come out just before the lease and the riders are signed. Do NOT deal with anyone who asks you to give them money before signing a lease, ever. This is not a matter of opinion, it is the way this type of business deal is conducted. Anyone who tells you otherwise, is not telling you the true story. Anyone who insists you do otherwise is either scamming you or simply putting you at a disadvantage you have no reason to have.
State your terms, stand your ground and be willing to let it go. It is only an apartment, and there will be others.
When I rented through a broker, I had to pay an application fee (~$300) to cover a credit check and for them to prepare my LL package. On the day of the lease signing, the broker gave me a list of cashier’s checks to bring – security deposit, first month’s rent, broker’s fee. I met her at her office, she drove me to the landlord’s office, lease signed, checks handed over. She then drove me to the apartment where we got the keys from the super. I don’t recall the exact point at which I handed over the broker’s check, but I was pretty comfortable with the whole process and all the fees were disclosed when I first met the broker. It was all very professional and the broker was focused on me – her client.
LOL, Tybur6.
Smells fishy to me. Don’t hand the money out unless you have a signed lease and keys in hand.
They’ve given you paperwork? They want no contact with you in the presence of the landlord? Sounds like a scam. Looks to me like they’re getting paid a fee by the landlord (not uncommon in this market) and are charging you a fee as well. I bet the landlord doesn’t know they are double dipping.
Oh, bfarwell, I’m sure it’s not Rapid Realty. If you remember, one of the owners replied to a thread on here and said they were very professional and he couldn’t believe anything shady was going on in his company.
I took that to mean they fired everyone in their employ and recently started over from scratch.
Sounds like a shady human being… not ‘protocol.’ You are paying the agent for their services to COMPLETION. They shouldn’t get a penny if you are not complete… anything short of you having a signed lease and the keys to an apartment means they haven’t done their job yet.
What Ghostnote said. Crown Heights has some very nice areas, and we like living here.