Home News Broker’s fee of nearly $20K under probe by state

Broker’s fee of nearly $20K under probe by state

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State officials are investigating a Manhattan real estate transaction that has led to tenants paying about $20,000 or more for apartments with stable rents.

The State Department, which grants licenses to real estate agents, is investigating the deal, a spokesperson said.

post clearly Suppose Ari Wilford of City Wide Apartments in Manhattan requests a very high rate for renting a one-bedroom unit on the Upper West Side for $1,725 ​​a month. She said the lessee paid her $19,500 after negotiating a $500 markdown.

This fee was well above the typical brokerage fee of 15% of one month’s rent or one year’s rent. The state does not set limits on fees, but it says agencies cannot charge “exorbitant fees that are unreasonably related to the work required to earn the fees.”

City Councilman Keith Powers, who represents Midtown and parts of the Upper East Side, said the “exorbitantly high” fees “undermine the city’s affordable housing goals and keep New Yorkers out of the market forever.” criticized.

Alderman Keith Powers took issue with the “extremely high” fees.

“As we rebuild, I will work with my colleagues on the council to address this issue by making it easier for tenants to acquire apartments,” he said.

Other tenants told the Post that Wilford and Citywide also demanded exorbitant rates.

One Manhattan woman said Wilford wanted $8,000 to lease a stable one-bedroom for $1,985 in 2020.

“To be clear, Ali wasn’t in New York. Due to COVID, he moved,” the woman said, adding that she was just handling paperwork. She ended up paying $7,000. rice field.

People looking for another apartment said Wilford demanded $10,000 at $2,400 a month for a regulated one bedroom in Gramercy Park in 2019.

Ali Walford.
Ali Walford.

“He kept calling the apartment Unicorn,” said a prospective tenant who didn’t ask for a contract.

Wilford did not immediately return a request for comment.The head of the agency, Michael Jacobs, defended the charges.

“Brokers offer great value to their clients and are working harder than ever at a time when demand is skyrocketing, supply is low and finding a home in New York City is more difficult than ever. These factors, along with the highly competitive process for obtaining rent-stable apartments and the current system surrounding these units, have led to these high rates we are seeing.” he said in a statement.

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