So if life wasn’t complicated enough the Department of State has changed the rules regarding the commission arrangement for landlords and tenants. As of February 5,2020 landlords can no longer require tenants to pay brokerage fees to a broker/agency representing the landlord. Please note that this only applies to a broker/agent representing the landlord. If a broker/agent represents the tenant, and has a representation agreement that sets out a brokerage fee to be paid by the tenant, then the broker/agent can be paid by tenant client. Similary, the landlord can pay the landlord’s agent as well. The landlord’s broker/agent cannot be paid by the tenant.
Accordingly, as of February 6, 2020:
Landlords: if you are a landlord you need to pay the brokerage fee to your own agent. You can also pay the tenants broker/agent if you wish, although you not have to. You cannot compel the tenant to pay your landlord’s agent.
Tenants: If you are a tenant you do not have to pay a brokerage fee to a broker representing a landlord. You may still have to pay your own tenant’s agent, if you have one pursuant to a separate agreement.
