Misrepresentation by Broker - Rental

We rented an apartment through a broker a little over a year ago and paid her a 12% fee – coming in at approximately $7,000. We were very clear on saying this was a family home (we had one son at the time and now have two) and that we wanted to be in a long term situation. We asked to extend the one year lease offered and we’re given 18 months. The brownstone has now sold and we’ve been made aware that it went on the market “silently” less then one month after we moved in – listed and sold by the same broker who’s fee we paid for renting. It also came to our that she had listed the house prior to our signing the lease and it was only removed for the few weeks when we first moved in. We have emails and documents with proof of this. Had we known this informtation we never would have taken the apartment with a $7000 broker’s fee knowing it would only be a tempoarary home. Is this illegal on the part of said broker? Is there recourse for getting our fee back? Never mind the moving costs of moving twice….

james3210

in General Discussion 9 years ago

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katdov | 9 years ago

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The new owner has to honor your lease until its termination date. He bought this building with tenants in place (I’m sure all the active leases are part of the contract). However, he has no legal obligation to extend your lease. While your agent acted unethically, I’m not sure you have a case if longer term is not specified on your lease. Even if the building did not sell and the agent did not lie to you, the agent had no way to guarantee that the landlord would have extended your lease after its expiration. Furthermore, I am guessing this was the listing agent, ie, not your agent but the landlord’s? If so, that agent’s fiduciary responsibility is to the Landlord (you should have had your own agent who would have shared the commission with the other agent, at no extra cost to you). That said, you can try and file an ethics complaint with REBNY (Real Estate Board of NY) who is responsible for enforcing the code of ethics (provided this agent is a REBNY member).

mozeeatupu | 9 years ago

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Do you know the new owner will not renew your lease? They have to honor your current lease.
You paid a fee to get a rental. You got a rental. Don’t see a case, but IANAL

stuyheights | 9 years ago

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Small claims. Max 5k. It’s your only shot