NY State Senate Bill 2021-S6427A

Senate Bill S6427A

2021-2022 Legislative Session

Prohibits landlords, lessors, sub-lessors and grantors from demanding brokers' fees from a tenant

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 29, 2022	print number 6427a
Aug 29, 2022	amend and recommit to judiciary
Jan 05, 2022	referred to judiciary
Apr 28, 2021	referred to judiciary

Bill Amendments

Original

A (Active)

co-Sponsors

2021-S6427 - Details

See Assembly Version of this Bill:: A7934
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §238-a, RP L
Versions Introduced in 2023-2024 Legislative Session:: S2783, A4781

2021-S6427 - Summary

Prohibits landlords, lessors, sub-lessors and grantors from demanding broker's fees from a tenant.

2021-S6427 - Sponsor Memo

                                
 
BILL NUMBER: S6427

SPONSOR: BRISPORT
 
TITLE OF BILL:

An act to amend the real property law, in relation to prohibiting land-
lords, lessors, sub-lessors and grantors from demanding brokers' fees
from a tenant

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 238-a of the real property law.
Section two provides that this act shall take effect immediately.

 
JUSTIFICATION:

This legislation is necessary in order to save the State of New York the
litigation costs that will be necessary to remedy an erroneous interpre-
tation of the Statewide Housing Security and Tenant Protection Act of
2019 by a single court in April 2021.

Pursuant to NY RPL § 238-a(1)(a), "no landlord, lessor, sub-lessor or
grantor may demand any payment, fee, or charge for the processing,
review or acceptance of an application, or demand any other payment, fee
or charge before or at the beginning of the tenancy, except background
checks and credit checks..." That language is clear, precise, and unam-
biguous in prohibiting the collection of brokers' fees.

Consistent with the clear and explicit language of this provision, the
New York State Department of State issued interpretive guidance on the
question of whether a landlord's agent could collect a "broker fee" from
a prospective tenant. The Department of State answered:  "No, a land-
lord's agent cannot be compensated by the prospective tenant for bring-
ing about a meeting of the minds." This guidance correctly identified
that a "fee to bring about the meeting of the minds" would effectively
be a "payment, fee or charge before or at the beginning of the tenancy,"
and would therefore be explicitly prohibited by the clear terms of NY
RPL § 238-a(1)(a).

Unfortunately, and in direct conflict with the law and the interpretive
guidance of the Department of State, a single court has interpreted the
"sponsor's intent" differently, and ruled that brokers' fees are not
prohibited under the Statewide Housing Security and Tenant Protection
Act of 2019. Litigating this issue will cause New York State to incur
litigation expenses that could otherwise be avoided by simply amending
the (already clear) provisions of the Statewide Housing Security and
Tenant Protection Act of 2019 to directly address this single court's
April 2021 opinion.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6427 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6427
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 28, 2021
                                ___________
 
 Introduced  by Sen. BRISPORT -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation to prohibiting  land-
   lords,  lessors, sub-lessors and grantors from demanding brokers' fees
   from a tenant

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 1 of section 238-a of the real
 property law, as added by section 10 of part M of chapter 36 of the laws
 of 2019, is amended to read as follows:
   (a)  Except  in  instances where statutes or regulations provide for a
 payment, fee or charge, no landlord, lessor, sub-lessor or  grantor  may
 demand any payment, fee, or charge for the processing, review or accept-
 ance  of  an  application,  or  demand  any other payment, fee or charge
 before or at the beginning of the tenancy, INCLUDING BUT NOT LIMITED  TO
 BROKER'S FEES, except background checks and credit checks as provided by
 paragraph  (b) of this subdivision, provided that this subdivision shall
 not apply to entrance fees charged by continuing care retirement  commu-
 nities  licensed  pursuant  to  article  forty-six or forty-six-A of the
 public health law, assisted living providers licensed pursuant to  arti-
 cle forty-six-B of the public health law, adult care facilities licensed
 pursuant to article seven of the social services law, senior residential
 communities  that have submitted an offering plan to the attorney gener-
 al, or not-for-profit  independent  retirement  communities  that  offer
 personal  emergency  response, housekeeping, transportation and meals to
 their residents.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11133-01-1

co-Sponsors

2021-S6427A (ACTIVE) - Details

See Assembly Version of this Bill:: A7934
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §238-a, RP L
Versions Introduced in 2023-2024 Legislative Session:: S2783, A4781

2021-S6427A (ACTIVE) - Summary

Prohibits landlords, lessors, sub-lessors and grantors from demanding broker's fees from a tenant.

2021-S6427A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6427A

SPONSOR: BRISPORT
 
TITLE OF BILL:

An act to amend the real property law, in relation to prohibiting land-
lords, lessors, sub-lessors and grantors from demanding brokers' fees
from a tenant

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 238-a of the real property law.

Section two of this bill provides that this act shall take effect imme-
diately.

 
JUSTIFICATION:

This legislation is necessary in order to remedy an erroneous interpre-
tation of the Statewide Housing Security and Tenant Protection Act of
2019 by a single court in April 2021.

Pursuant to NY RPL § 238-a(1)(a), "no landlord, lessor, sub-lessor or
grantor may demand any payment, fee, or charge for the processing,
review or acceptance of an application, or demand any other payment, fee
or charge before or at the beginning of the tenancy, except background
checks and credit checks..." That language is clear, precise, and unam-
biguous in prohibiting the collection of brokers' fees.

Consistent with the clear and explicit language of this provision, the
New York Department of State issued interpretive guidance on the ques-
tion of. whether a landlord's agent could collect a "broker fee" from a
prospective tenant. The Department of State answered: "No, a landlord's
agent cannot be compensated by the prospective tenant for bringing about
a meeting of the minds." This guidance correctly identified that a "fee
to bring about the meeting of the minds" would effectively be a
"payment, fee or charge before or at the beginning of the tenancy," and
would therefore be explicitly prohibited by the clear terms of NY RPL §
238-a(1)(a).

Unfortunately, and in direct conflict with the law and the interpretive
guidance of the Department of State, a single court has interpreted the
"sponsor's intent" differently, and ruled that brokers' fees are not
prohibited under the Statewide Housing Security and Tenant Protection
Act of 2019. Litigating this issue will cause New York State to incur
litigation expenses that could otherwise be avoided by simply clarifying
the (already clear) provisions of the Statewide Housing Security and
Tenant Protection Act of 2019 to directly address this single court's
April 2021 opinion.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6427A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6427--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 28, 2021
                                ___________
 
 Introduced by Sens. BRISPORT, SALAZAR -- read twice and ordered printed,
   and  when  printed  to  be  committed to the Committee on Judiciary --
   recommitted to the Committee on Judiciary in  accordance  with  Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the real property law, in relation to prohibiting  land-
   lords,  lessors, sub-lessors and grantors from demanding brokers' fees
   from a tenant
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 1 of section 238-a of the real
 property  law, as amended by chapter 789 of the laws of 2021, is amended
 to read as follows:
   (a) Except in instances where statutes or regulations  provide  for  a
 payment,  fee  or charge, no landlord, lessor, sub-lessor or grantor may
 demand any payment, fee, or charge for the processing, review or accept-
 ance of an application, or demand  any  other  payment,  fee  or  charge
 before  or at the beginning of the tenancy, INCLUDING BUT NOT LIMITED TO
 BROKER'S FEES, except background checks and credit checks as provided by
 paragraph (b) of this subdivision, provided that this subdivision  shall
 not  apply to entrance fees charged by continuing care retirement commu-
 nities licensed pursuant to article  forty-six  or  forty-six-A  of  the
 public  health law, assisted living providers licensed pursuant to arti-
 cle forty-six-B of the public health law, adult care facilities licensed
 pursuant to article seven of the social services law, senior residential
 communities that have submitted an offering plan to the attorney  gener-
 al,  or  not-for-profit  independent  retirement  communities that offer
 personal emergency response, housekeeping, transportation and  meals  to
 their  residents. Nothing in this paragraph shall prohibit a cooperative
 housing  corporation,  other  than  a  cooperative  housing  corporation
 subject  to the provisions of article two, article four, article five or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11133-03-2

 S. 6427--A                          2
 
 article eleven of the private housing finance law, from demanding from a
 prospective tenant any payment, fee or  charge  which  is  necessary  to
 compensate  a  managing  agent and/or transfer agent for the processing,
 review or acceptance of such prospective tenant's application where such
 prospective  tenant would become a dwelling unit owner or shareholder of
 such cooperative housing corporation.
   § 2. This act shall take effect immediately.

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Senate Bill S6427A

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Sponsored By

Jabari Brisport

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Bill Amendments

co-Sponsors

Julia Salazar

2021-S6427 - Details

2021-S6427 - Summary

2021-S6427 - Sponsor Memo

2021-S6427 - Bill Text download pdf

co-Sponsors

Julia Salazar

2021-S6427A (ACTIVE) - Details

2021-S6427A (ACTIVE) - Summary

2021-S6427A (ACTIVE) - Sponsor Memo

2021-S6427A (ACTIVE) - Bill Text download pdf

Comments