A prominent real estate association has filed a lawsuit against New York City over a new law mandating that landlords pay broker fees.
The Real Estate Board of New York (REBNY) and other affiliated groups initiated the legal action on Monday in a federal court in Manhattan, arguing that the law will “wreak havoc on the New York City rental markets and unleash a host of unintended consequences.”
The New York City Council passed the controversial measure last month, requiring landlords to cover the costs of hiring brokers rather than shifting these expenses onto tenants. This practice, which had been a longstanding feature of the city’s rental system, added an extra financial burden for renters when moving into new apartments.
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