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?
Almost sounds as if the LL does not know the broker is taking a fee. Either way, your terms are 100% correct. Pen-in-hand in the presence of LL agent is when the check comes out.
With all due respect, Englishkills, Crown Heights is not a hellhole. I live at Park Place and Franklin and it’s lovely.
You should have signed something before they showed you the apartment that says they get paid if you lease it. If you didn’t sign that, you can go around them (not so ethical perhaps, but that’s why they have you sign those binders). If that didn’t happen, I’d be even more suspicious.
I won’t be as harsh as the others, but it’s true that having to pay a broker’s fee for a non-prime area like Crown Hts in this market is not as customary. But then again, you get what you pay for, and if the apartment is awesome, and you think it’s worth it, more power to you. I do think you’re right to be cautious with certified checks and strangers.
Where there’s bs, there’ll be more. Don’t even try to hold their feet to the fire. Walk away from this one. (I say this as a LL.)
If you want to check to see if the broker is licenses, you can do an online search through NYS licensing database. Here is the link: https://appsext7.dos.state.ny.us/nydos/selSearchType.do
The agent should show up for and stay for the signing. This is customary, at least in my relatively limited experience of renting apartments.
wasn’t Rapid Realty, was it? Just had a similar weird thing, except it was the deposit (no-fee apt) before the lease. They seem reputable and have a real office, etc, but I’m still sketched out by it.
Trust your gut. If you feel something is not quite right, you are most probably correct.
Have you signed anything with the “brokers?” do they have an office? Have you checked their reputation?
There are so many scams out there.
This could even be one of those scams where they take your money and you never see them or the apartment again. Happens.