Home / Daily Dose / Rule Could Have ‘Devastating’ Impact on Brokers
Print This Post Print This Post

Rule Could Have ‘Devastating’ Impact on Brokers

A New York judge has granted a temporary restraining order to prevent new rules taking effect that banned brokers from receiving fees on rentals in the state following a real estate group’s lawsuit, according to the National Association of Realtors (NAR). 

The short-term relief was in response to the Real Estate Board of New York, the New York Association of Realtors, and other brokerages suing the Department of State over its broker ban fee ruling they called “unlawful” and having an “immediate and devastating” impact on brokers.

Brokers can continue to collect a commission from tenants for rentals in the Empire State. The NAR states the temporary restraining order will likely stay in place until March 13, when the Department of State will need to respond in court to allegations.

According to the NAR, the judge put the restraining order in place so that all could argue their case in court before making a decision. 

The presidents of the Real Estate Board and New York State Association of Realtors said in a joint statement in response, that the judge’s temporary restraining order “means thousands of hardworking, honest real estate agents across New York state can do business in the same they did.” 

The New York Times also reported earlier this month that New York City is considering changes to its property tax guidelines that could have positive and negative impacts on investors and residents alike. 

The city’s proposal is likely to affect 90% of homeowners in the city, from low-income homeowners to large-scale investors and property owners.

According to the New York Times, single-family homeowners in parts of Queens, Staten Island and the Bronx are likely to see lower taxes under the new bill. Additionally, low-income homeowners citywide could qualify for a “partial homestead exemption,” limiting tax bills to certain percentages of household income.

Higher priced homes, including luxury condos, are likely to be taxed more, as well as out-of-town homeowners.

“People who own a pied-à-terre in Manhattan will be paying more,” said James A. Parrott, director of economic and fiscal policies at the Center for New York City Affairs at the New School and member of the commission that drafted the bill.

About Author: Mike Albanese

Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville.

Check Also

2023 Was the Least Affordable Year on Record. Will 2024 Follow Suit?

The least affordable markets included Anaheim and San Francisco, where homebuyers with the typical local income would’ve needed to spend over 80% of their pay on monthly housing costs.