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New York City’s FARE Act In Court: Whether It’s “Fair” Is Still Under Review
In late 2024, the City Council upended the New York City rental markets when it passed the Fairness in Apartment Rental Expenses (FARE) Act (the Act), which, in part, prevents a real estate broker who “publishes” a real estate listing or who enters into a listing agreement with a landlord from seeking payment of their brokerage fee from the prospective tenant. The real estate industry — led by the Real Estate Board of New York (REBNY), the New York State Association of REALTORS® (NYSAR), real estate brokerage firms who specialize in rental listings, and certain landlords — sued the City and the Department of Consumer and Worker Protection Commissioner, arguing the law is unconstitutional and preempted by state statute.
On June 10, 2025, however, U.S. District Judge Ronnie Abrams issued an Opinion in REBNY v. City of New York denying plaintiffs’ request for an injunction and dismissing their First Amendment and Preemption challenges, while allowing the claim under the Contracts Clause to proceed. That ruling allowed the Act to take effect on June 11, 2025. This article analyzes the court’s decision, its impact, and what happens next.
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