At its Mid-Year Meeting, NAR also officially rescinded its “Non-Commingling Rule,” which was an optional policy that permitted Multiple Listing Services to limit display of listings online.
The real estate landscape in New York is continuously evolving, with significant updates from the National Association of REALTORS® new local regulations like the New York City Fairness in Apartment Rental Expenses Act (the FARE Act), and updates to New York State’s Property Condition Disclosure Statement. This article provides a comprehensive summary of these developments to help real estate agents stay informed and compliant while effectively serving their clients.
NYC FARE Act Updates
Recent Court Dismissal and Denial of Injunction
The NYC FARE Act, which went into effect on June 11, 2025, represents a dramatic shift in the New York City rental market by requiring landlords to pay broker fees for agents they hire, relieving tenants of this financial burden. Earlier this year, the Real Estate Board of New York and the New York State Association of REALTORS® filed a lawsuit against, and sought an injunction to block, the implementation of the FARE Act, arguing it could lead to higher rents and market confusion. They also alleged that the FARE Act violated constitutional protections based on First Amendment and Contract Clause claims. On April 3, Gov. Kathy Hochul’s administration filed an amicus brief asking the court to uphold the law and emphasizing that the FARE Act does not conflict with existing state regulations.
On June 10th, the trial court denied REBNY’s and NYSAR’s motion, allowing the FARE Act to take effect as expected on June 11th. While the judge in the case dismissed most of the constitutional claims, the “Contract Clause” claim was allowed to stand. REBNY and NYSAR immediately filed a notice on June 12th that they would be appealing the judge’s decision to the Second Circuit.
For real estate agents, this means a significant change in how rental transactions are structured in New York City. Tenants will no longer be responsible for paying broker fees when the landlord hires the agent, potentially saving renters thousands of dollars in upfront costs. Agents must now focus on negotiating clear agreements with landlords to ensure that their commissions are paid directly by the property owner. This shift may also increase demand for rental properties, as tenants face lower move-in costs, but agents and tenants should be prepared for potential pushback from landlords who may attempt to offset the added costs by raising rents significantly.
Prior Court Decision in 2021:
NYS DOS Guidance in 2020 on Rental Commissions
In 2020, the New York State Department of State, after the passage of the 2019 Housing Stability and Tenant Protection Act (“2019 Act”), issued a guidance interpreting a part of the 2019 Act as a ban on tenants being forced to pay broker fees. REBNY filed a lawsuit alleging that the DOS had overstepped its authority in issuing its guidance. In April 2021, a judge decided in REBNY’s favor and held that “the guidance was issued in error of law and represents an unlawful intrusion upon the power of the Legislature and constitutes an abuse of discretion.” This decision was likely an important catalyst which ultimately led the New York City Council to pass the FARE Act.
While the DOS has not issued a formal statement specifically addressing the new FARE Act as of the latest available information, the DOS typically oversees real estate licensing and regulations, ensuring compliance with New York State’s real estate laws and pertinent regulations. Given the FARE Act’s local scope within New York City, the DOS is likely to monitor its implementation to ensure consistency with broader real estate regulations, such as those governing broker conduct and commission agreements, and ensure compliance with the law.
