after signing lease... a broker's fee added; now they deny lease (real estate, apartment)

[beelzebubjones]

after nearly a week of giving paperwork, taxes returns, credit check and providing a guarantor i was told that the $2200 per month manhattan apartment was mine. the real estate agent i worked with was a nice young man and when i first started working with him a couple of weeks ago he told me there was no fee for this apartment. so, i was surprised when i received an email from his office listing the certified checks i must bring for the lease signing. one for $2200 first month rent, one for $4400 two months security and one for $220 broker fee. it wasn't much. just 10% but still he had said there was no fee.

i met my agent this morning at the apartment, handed him the checks and he had me sign the lease. then he said there was a mistake. the fee was supposed to be $2200 not $220. i showed him the email and it was quite clear $220. i told him he had said there was no fee and he confirmed he told me that and wasn't sure why there was one now. he called the office and they said it was a mistake it wasn't $220 it was $2200. now they have the lease, my checks and are informing me i cannot have the apartment unless i give them the $2200 fee. is this legal? they picked over everything about my financial past; they left me no room for error and thankfully i had none. they made a mistake. i signed the lease they have my checks. what do i do? i want this apartment but this last minute fee. the mistaken amount. who can i call? thanks to anyone for help.

[Viralmd]

The usual fee is AT LEAST one month's rent...so it does sound like there was an error.

[beelzebubjones]

thanks. i know that's true. and that's why i asked before taking any action if there was a fee. i have since found out that the building is a rental building and the real estate agency told me it was a co-op being rented out by a private owner. now i'm finding out that the building may be paying the fee. which isn't uncommon so am i getting double dipped?

[Viralmd]

Originally Posted by beelzebubjones

thanks. i know that's true. and that's why i asked before taking any action if there was a fee. i have since found out that the building is a rental building and the real estate agency told me it was a co-op being rented out by a private owner. now i'm finding out that the building may be paying the fee. which isn't uncommon so am i getting double dipped?

It makes NO sense for the building to be paying the fee. I've never heard of that in a co-op. And, in fact, most co-ops require the renter to be interviewed by the board IF they allow rentals at all! Co-ops don't throw money around like that - that fee would be paid by you OR by the shareholder of the apartment. The board wouldn't take on that burden.

[beelzebubjones]

thanks. points all taken. just got off the phone with the agency. they offered a discount $1500 fee which is a savings (had i known about it) of $700. so i'm going with it. thanks for your answers. and obvious knowledge and experience. cheers.

[lowndes]

Well, they should honor what they said and charge you $220. Otherwise, I would definitely not rent the property. No way to conduct business and you were shown an early sign of what the people are like.

[SeventhFloor]

Originally Posted by Viralmd

It makes NO sense for the building to be paying the fee. I've never heard of that in a co-op. And, in fact, most co-ops require the renter to be interviewed by the board IF they allow rentals at all! Co-ops don't throw money around like that - that fee would be paid by you OR by the shareholder of the apartment. The board wouldn't take on that burden.

100% true