Landlords lose appeal challenging NYC broker fee ban

MANHATTAN (CN) — New York City landlords, real estate brokers and industry groups lost their attempt to revive a challenge to a city law that took effect last year, prohibiting landlords from passing on broker fees to their tenants.

Since taking effect in June 2025, the Fairness in Apartment Rental Expenses Act has eliminated a mandatory fee, typically 10% to 15% of annual rent, that landlords typically pay to brokers. Landlords and real estate groups appealed to the Second Circuit after a federal judge dismissed their December 2024 lawsuit and denied their request for a preliminary injunction.

A three-judge panel affirmed the lower court’s ruling…

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