NYC: NYSAR, REBNY File Suit vs. New Broker Fee Law Effective June 2025

"The Real Estate Board of New York, the New York State Association of Realtors, and individual brokerages and property owners jointly filed a lawsuit Monday in federal district court in Manhattan to preserve a system in which renters are regularly saddled with hefty fees for leasing agents their landlords hire," said Politico.

When does the law take effect? June 13, 2025: "The measure, which the City Council approved on Nov. 13 with a veto-proof majority, automatically became law after Mayor Eric Adams declined to sign it within a 30-day window. It will take effect in six months," reported WNYC's Gothamist.

What does the lawsuit claim? "[That] the law violates the right to free commercial speech under the First Amendment of the U.S. Constitution by restricting apartment listings; it violates the contracts clause in the Constitution by invalidating contracts between brokers and landlords; and it is pre-empted by state law that regulates real estate brokers," reported The New York Times.