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Hamptons.com
February 11, 2020

Brokers In An Uproar Over Guidelines Issued By The New York Department Of State Regarding New Rent Laws

John A. Viterittiby John A. Viteritti
in Real Estate
Home Real Estate

On January 31, 2020 New York’s Department of State issued new guidelines to real estate brokers with respect to the Housing Stability and Protection Act that became effective June 14, 2019. Two previous articles on the subject have appeared on this website since that date.

It was reported in the February 8th issue of The New York Times that the Real Estate Board of New York (REBNY) and the New York State Realtors Association (NYSAR) were filing a lawsuit against the Department of State (DOS). In a memorandum to real estate brokers Alfred M. Fazio, Esq. with the law firm Capruder Fazio Giacoia, LLP stated: “The Real Estate Board of New York (REBNY) and the New York Association of Realtors (NYSAR), in conjunction with several major New York residential brokerage firms, are planning to file an Article 78 proceeding on Monday, February 10th, to stop enforcement of the guidance statement. It is their hope that a NYS Supreme Court Justice will issue a temporary order enjoining DOS from enforcing any provision of the Guidance Statement until such time that the Court can hear arguments on its legality as it pertains to The Tenant Act. Until such time that an injunction is issued, if it is in fact issued, licensees should adhere to the position that tenant paid fees can no longer be paid to brokerage firms acting as the agent of the landlord.” In an earlier article, “You Can’t Fight City Hall! You Can Try But You May Not Win,” we talked about Article 78 filings. On February 11th NYSAR reported, “As a result initiated by NYSAR, REBNY and others, a temporary restraining order was granted today. This order removes the prohibition against landlord’s agents collecting commissions from tenants the same way they did prior to last week’s DOS memo without fear of discipline by the DOS. Such practice may continue until further notice. NYSAR has a return date of March 13th to continue litigation of the DOS interpretation of the Housing Stability and Tenant Protection Act.”

Among the guidelines of greatest concern to the real estate brokers is the one that poses the question: “Can a landlord’s agent collect a ‘broker’s fee’ from the prospective tenant?” Before we provide the answer, some context might first be in order. The license law does not base representation on who pays the commission. The broker may represent the seller or buyer, landlord or tenant irrespective of which pays the commission. Representation is not based on who pays the commission. However, there is an exception to this rule. In Manhattan, Brooklyn, the Bronx, Queens, Staten Island, Nassau, Westchester, and Rockland Counties that have rent regulation laws that limit the amount of rent a landlord may charge, the tenant pays the commission. In fair market rentals, it is negotiable. By custom, the parties may treat short-term and long-term tenancies differently. So what is the answer to the posed question under the new DOS guidelines? “No. A landlord’s agent cannot be compensated by the prospective tenant for bringing about the meeting of the minds.” It goes on to say: “A landlord’s agent that collects a fee for bringing about the meeting of the minds between the landlord and tenant from the tenant can be subject to discipline.” If the broker is representing the tenant, then the tenant may pay the broker’s fee.

The guidelines also addressed issues related to residential co-ops and condominiums, not specifically broker fees. To be able to better address the issue, some points of clarification are necessary. A person who owns the shares in a residential co-op has a proprietary lease. They are tenant shareholders. If the bi-laws of the co-op permit, they may sublet the unit to a sub-tenant. If the tenant shareholder engages a real estate broker, can the broker charge a fee to the sub-tenant? In a residential condominium one may own the unit and bi-laws permitting, may lease the unit to a tenant. If the unit owner engages a real estate broker may the tenant pay the broker’s fee?

Alfred M. Fazio, Esq. of the New York Law firm, Capruder Fazio Giacoia includes in a published memorandum to real estate brokers: “The million dollar question is what happens if the firm [brokerage] is acting in a dual agency capacity and representing both the landlord and the tenant in the transaction…..and unfortunately we will need guidance from the DOS in order to provide you with an intelligent answer. Until further clarification and we do not know when that is going to occur, it would be safe to say to assume that if the firm has any agency relationship to the listing and the landlord, the tenant should not be paying a commission to the firm.”

In a notice to its members NYSAR says, in part: “This document is specifically limited to the actions and potential liability of a licensee by the DOS. It is not authoritative as to the new law and its applicability to landlords and should not be provided to or relied upon by any landlords, cooperative boards or condominium boards. This is only the position of the DOS as it applies to licensee disciplinary actions as initiated by the DOS.”

These are only some of the issues addressed in the DOS guidelines. Before proceeding with any activities that may be subject to the Tenant Protection Act or the DOS Guidelines should seek legal counsel.

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Southampton Hospital Foundation Golf Outing at Sebonack Golf Club

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Yizkor Memorial Service

October 14 @ 11:00 AM - October 14 @ 01:00 PM
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FoodLab’s Tea Talk Tuesdays with SOFO’s Frank Quevedo

October 14 @ 03:30 PM - October 14 @ 05:30 PM
Stony Brook University FoodLab 39 Tuckahoe Rd. Southampton NY 11968
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Fahrenheit 451 – Bay Street Theater

October 14 @ 07:00 PM - November 30 @ 02:00 PM
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We Will Dance Again-Simchas Torah Celebration

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INTERVIEW: Directors Lisa Barros D’Sa And Glenn Leyburn On Their Latest Film, “Ordinary Love,” How Bono Helped Them Cast Liam Neeson, And More

INTERVIEW: Directors Lisa Barros D'Sa And Glenn Leyburn On Their Latest Film, "Ordinary Love," How Bono Helped Them Cast Liam Neeson, And More

  • Sag Harbor resident, actor, writer, and teacher Josh Pais has spent decades exploring what it means to be fully present—on screen and in life. Known for his roles in Joker, Ray Donovan, the original Teenage Mutant Ninja Turtles, and many others, he has more than 150 film and television credits to his name. He has now turned his focus inward with his new memoir, Lose Your Mind: The Path to Creative Invincibility, which was released on September 30, 2025.⁠
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Drawing on his years of experience as founder of the Committed Impulse training method, Josh offers readers a bold invitation to release self-judgment, lean into all feelings, and connect with the spontaneous energy that fuels authentic creativity. His message—both playful and profound—challenges the myth of “good” and “bad” emotions and instead celebrates the full spectrum of human experience.⁠
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Josh will visit Sag Harbor for a reading and book signing this Sunday, October 12th from 4:00–5:30 p.m. at Grenning Gallery (26 Main Street, Sag Harbor). ⁠
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📸: Commune Media⁠
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Read the full interview at Hamptons.com (Link in Bio)⁠
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#hamptons #joshpais #book #sagharbor #author #actor
  • @linamxn at the Sag Harbor Music Festival! @sagharbormusic 

The four day festival kept the music going over 4 days at various stages in Sag Harbor. 

#sagharbormusicfestival #sagharbor #hamptons #livemusic #linamaxine #local
  • Grab your furry friend and take a stroll to Main Beach with ARF!

Check out the Top Hamptons Events This Weekend!

🐾 ARF’s Stroll to the Sea Dog Walk
📅 When: Saturday, October 11, 2025 | 9AM–12PM
📍 Where: Mulford Farm, 10 James Lane, East Hampton, NY

Enjoy vendors, contests, and giveaways before strolling to Main Beach.

🥣 Chowdah Chowdown
📅 When: Saturday, October 11, 2025 | 12PM–3PM
📍 Where: Springs Tavern and Grill, 15 Fort Pond Blvd, East Hampton, NY

All-you-can-eat chowder and soup from 20 local chefs, plus live music and a mocktail bar — all to benefit the Springs Food Pantry!

🍺 SagtoberFest
📅 When: Sat, Oct 11 – Sun, Oct 12, 2025 | 12PM–8PM
📍 Where: Kidd Squid, 11 Spring St, Sag Harbor, NY

Celebrate Oktoberfest Sag Harbor–style! Enjoy bratwurst, pretzels, oysters, pumpkin stew, and live music by Jon Divello, Woody Boley, Greg McMullen & Jake Lear.

🎬 33rd Hamptons International Film Festival
📅 When: Thurs, Oct 9 – Mon, Oct 13, 2025 | 9AM–10PM
📍 Where: Various Locations

The 33rd edition of HIFF brings a world-class lineup of narrative and documentary films, features, and shorts from around the globe. 

🍪 Levain Bakery: Book Talk & Signing
📅 When: Saturday, October 11, 2025 | 12PM–1PM
📍 Where: BookHampton, 41 Main Street, East Hampton, NY

Meet Levain Bakery cofounders Pam Weekes & Connie McDonald and grab their new book.

🌿 26th Annual Long Pond Greenbelt Celebration
📅 When: Saturday, October 11, 2025 | 10AM–1PM
📍 Where: SOFO Museum, 377 Bridgehampton–Sag Harbor Tpk, Bridgehampton, NY

Enjoy games, crafts, guided walks, face painting, and ice cream!

🎉 CMEE’s Big Birthday Bash!
📅 When: Saturday, October 11, 2025 | 10AM–12PM
📍 Where: SOFO, 376 Bridgehampton–Sag Harbor Tpk, Bridgehampton, NY

Join for crafts, treats, dance, and play!

🛋️ Hub Home Grand Opening Party & Open House
📅 When: Friday, October 10, 2025 | 6PM–9PM
📍 Where: HUB Home, 2183 Montauk Hwy, Bridgehampton, NY

Celebrate the grand opening of HUB Home, a curated consignment shop with luxury furnishings, art, and décor.

Check out more events at Hamptons.com (Link in Bio)
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#hamptons #arf #community #stephentalkhouse #dining #hamptonsfilmfestival
  • The 33rd Hamptons International Film Festival kicked off last Friday with the U.S. premiere of A24’s Eternity starring Elizabeth Olsen, Miles Teller, and Callum Turner.⁠
⁠
Elizabeth Olsen attended the premiere on Friday, and on Saturday sat down with IndieWire’s Editorial Director Kate Erbland at the Sag Harbor Cinema as a part of the festival’s “A Conversation With” series. Later that day, the second “A Conversation With” took place as Ethan Hawke and moderator Alison Stewart talked about Blue Moon, as well as Hawke’s filmography. ⁠
⁠
Sydney Sweeney received the festival’s Achievement in Acting Award following the U.S. premiere of her film Christy in East Hampton. ⁠
⁠
Notable Guests included: Alessandro Nivola, Alec Baldwin, Amanda Peet, Tonatiuh, Miriam Shor, Lois Smith, Tim Blake Nelson, Mareille Enos, Bob Balaban, E. Jean Carroll, Roberta Kaplan, Ellen Barkin, Bernie Telsie, Bill Condon.⁠
⁠
📸: Jess Dalene⁠
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Check out the full gallery at Hamptons.com (Link in Bio)⁠
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#hiff #hamptonsinternationalfilmfestival #film #elizabetholsen #sydneysweeney #hamptons #hamptonsfilm⁠
  • When: Fri, Oct 3rd – Sun, Oct 5th, 2025
8am – 5pm

Where: Levain Bakery, 354 Montauk Hwy, Wainscott, NY

Levain Bakery is introducing a new cookie for a limited time: Peanut Butter Dark Chocolate Chip – a decadent mix of creamy and chunky peanut butter with rich dark chocolate chunks. Originally created to celebrate the opening of Levain’s Beverly Hills Bakery, this indulgent new flavor will now be available for just three days only, October 3–5, at all retail bakery locations.

To make the weekend even sweeter, guests who purchase a cookie will receive a Levain Bakery mini tote (while supplies last), a fan-favorite collectible sure to go quickly.

#levain #levainbakery #cookie #minitote #tote #hamptons
  • From world premieres at the Hamptons International Film Festival to SouthamptonFest! ⁠
⁠
Check out the Top Hamptons Events This Weekend!⁠
⁠
🎬 33rd Hamptons International Film Festival⁠
📅 Oct 3 – 13, 2025 | 9AM – 10PM⁠
📍 Various Locations⁠
A global lineup of films, shorts & documentaries.⁠
⁠
🍪 Levain Bakery⁠
📅 Oct 3 – 5, 2025 | 8AM – 5PM⁠
📍 354 Montauk Hwy, Wainscott⁠
Try the Peanut Butter Dark Chocolate Chip cookie + snag a mini tote (while supplies last).⁠
⁠
🎉 13th Annual SouthamptonFest⁠
📅 Oct 3 – 5, 2025 | 10AM – 7PM⁠
📍 Southampton Village⁠
Arts, culture, food & family fun all weekend long!⁠
⁠
🎶 SpringsFest⁠
📅 Oct 4, 2025⁠
📍 1 Parsons Pl, East Hampton⁠
Live music, raffles, crafts, blacksmith demos & more.⁠
⁠
💃 Salsa Social @ The Clubhouse Hamptons⁠
📅 Oct 4, 2025 | 9PM – 11:30PM⁠
📍 East Hampton⁠
Dance the night away w/ DJ Chile & more!⁠
⁠
🐚 34th Annual Largest Clam Contest⁠
📅 Oct 5, 2025 | 12PM – 3PM⁠
📍 Amagansett Life Saving Station⁠
Taste clam chowder, clam pies & cheer on the winners!⁠
⁠
🎷 East Meets West Jazz Jam Session⁠
📅 Oct 5, 2025 | 2PM – 5PM⁠
📍 Southampton Cultural Center⁠
Free community jazz jam – all are welcome.⁠
⁠
🌕 Full Hunter’s Super Moon Hike⁠
📅 Oct 6, 2025 | 6:30PM – 7:30PM⁠
📍 SOFO Museum Parking Lot⁠
Guided evening hike under the moonlight.⁠
⁠
✨ Which event are you most excited for?⁠
⁠
Check out more events at Hamptons.com (Link in Bio)⁠
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#hamptons #hamptonsinternationalfilfestival #hiff #jazz #fullmoon #hike #film #levainbakery #community
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