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The landlords on this forum are going to hate me but I will make this post regardless.
So last night I put in an application for an apartment in NYC with a broker. Now the other half wants to bail out one day later. I still have not put all the paperwork together and an application has not yet been submitted with the landlord or building management.
But the broker says I don't get the deposit of $1435 back. The claim is I won't be refunded unless we complete the application and get rejected. If we get accepted however we are on the hook for the commission fee and still don't get $1400 of the deposit back. The $35 being the non-refundable application fee.
I've been trying to look up NY contract rescission laws and unless I'm misreading then they can't do that. But the broker has in a nice way told us to basically pound sand and accept losing the deposit or complete the application.
Did you sign anything stating that you would not receive your deposit back or did the broker start telling you this when you called to cancel your app. My old company had a similar policy, but it was in our contract that was signed before submitting an application or taking a deposit. It stated that if you wanted to cancel your application, you would notify your agent via email before you got approved or within three days or submission if the landlord has not given an answer. It goes on to state that if you are approved, the broker fee is due and if you back out we can and will take you to small claims court. It gives protection on both sides and it was held up in court several times and the Department of State has also said the contract is not violating any laws.
If you signed something to that effect, you need to go back and read it. If you did not sign something stating that, threaten to take the brokerage firm to small claims court and report to them to the DOS for threatening to withhold your deposit without cause or a signed contract.
Additionally, some landlords do require a deposit on their end (such as Croman 9300). If you submit and application and deposit and do not follow it up with paperwork you risk losing your deposit. If this was the case and your agent already gave the landlord your deposit along with your application then the application you signed should have stated that and you may not get it back.
Signed a document of which I have a copy stating they keep the $1435 in the event I either don't complete the application or cancel on my end of the contract.
I think I have the answer then. Hard lesson to learn but I guess my co-signer felt the pressure of the fast paced saleswoman and has second thoughts a day later. Oh well.
GoHuskies, I am really sorry for you and very annoyed with your broker, who not only didn't represent you well (that's what you are paying him/her to do - to represent YOU and YOUR best interest in the deal), but also gives us real estate professionals a bad name.
Generally, the broker commission is paid at the lease signing.
GoHuskies, I am really sorry for you and very annoyed with your broker, who not only didn't represent you well (that's what you are paying him/her to do - to represent YOU and YOUR best interest in the deal), but also gives us real estate professionals a bad name.
Generally, the broker commission is paid at the lease signing.
I am a Manhattan agent and I am shocked that they pulled that on you, in fact I would still go over the details of that and call the company and ask to speak to a manager about it. That is ridiculous!
When it comes to applications etc for apartments the only thing you really loose is the application fee. They use that money for background checks etc, and that's the only usual non refundable fee. I am so sorry that this happened to you, it's agents like that , that give us a bad name.
If you would like a real agent without some shady deposit rules let me know I would be glad to help.
I would still look into that by the way the deposit is for the management company not the agent, who did you make it out? They shouldn't be able to keep if it's not made in their name.
Thought I'd just give an update. After taking some advice and mentioning the phase small claims court she returned the deposit via check minus the application fee.
Lesson learned, thanks everyone!
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