Legal Question in Landlord & Tenant Law in New York
Hi, I have a quick question regarding a broker's ability to prevent a tenant from moving into an apartment once the lease has already been signed. I signed a commission agreement with the broker last week which stated the broker fee would be 12%. I signed the lease this afternoon with the management company. The broker just sent me an email stating that the fee is 15%, and therefore he is $900 short, and further that I may not be able to move in unless I pay the increased 3% fee. If I have already signed the lease, can the broker prevent me from taking occupancy unless I pay the extra money? Thank you so much for your advice! Also, this question pertains to New York City Landlord/Tenant law.
1 Answer from Attorneys
They are usually two different agreements. One contract typically has nothing to do with the other agreement. Did your commission agreement say "12%" or "15%"? The commission agreement will be the controlling document if the broker takes you to small claims court to get their fee.
I don't think that the broker's agreement will affect the landlord's ability to enter a lease with you. Most landlords that I have represented couldn't care less if the broker gets paid for placing the tenant. They tend to view those brokers as a necessary evil in some respects.
Bottom line:
The broker's agreement should affect your ability to take the apartment but don't be surprised if the broker takes you to small claims court.
Good luck!
Christopher