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So I'm posting this to see what info I should have as I deal with a shady broker that has a significant brokers fee of ours, but we don't have an apt.
Situation:
My wife and I found an apartment, we liked it, we paid a brokers fee to take apt off the market, (one month rent plus application fees)
We get a call a few days later, they tell me we're approved, they'll set up a lease signing. As we get closer to move in date, we still haven't signed lease...
Finally I get ahold of management company to set up a time/day to sign lease. They inform us that we aren't on the lease.
Needless to say I'm freaked out.
I call broker, they say it's a mixup, they'll find out what's going on. When I finally hear back from broker they say " yeah it's rented to someone else, miscommunication, we'll find you something else"
Freakout continues...
So I call management company who have the lease and explain things. They say our application was never even looked at because the apartment had already been rented. They didn't even run our credit nothing.
In fact they send me the email that THEY send the brokers, informing them they already had an approved application for the apt, and that the brokers should show is another place they were suggesting in the email.
Deep breaths.
At this point we just want the brokers fee/application fees back.
Since then the brokers have dragged their heels every step of the way. They don't return calls or emails, and we had to go there in person only to be told it will take 7-14 business days to get the money back.
Monday will be 14 business days from the moment we started the refund process ( I have a confirmation email from them ) , and I've had no indication as to when I should expect my money back.
I can't believe it's taken this long as is, but I want to be as informed and prepared come Monday if we don't hear from them...
I have a signed piece of paperwork from them for the brokers fee, I have the receipt for the bank certified check I made out to them, and I have the email from the leasing agent basically saying "yeah, we didn't even look at your application."
Any suggestions on what I should do next? I have to assume we are getting our money but I'm nervous.
Sorry theis is so long winded, I think It was a bit therapeutic to type out!
Wait the promised time, keep records of all your conversations (email/text) and all proof where they state they will refund you. If they don't, go to small claims and file a suit. Then brokers wonder why they get a bad rep
This is the old bait & switch scam. Go here if you don't get the refund NYS Division of Licensing Services
You should complain even if you do get the refund because they are probably screwing many clients.
Last edited by Taxi guy; 03-15-2014 at 09:12 PM..
Reason: typo
So I'm posting this to see what info I should have as I deal with a shady broker that has a significant brokers fee of ours, but we don't have an apt.
Situation:
My wife and I found an apartment, we liked it, we paid a brokers fee to take apt off the market, (one month rent plus application fees)
We get a call a few days later, they tell me we're approved, they'll set up a lease signing. As we get closer to move in date, we still haven't signed lease...
Finally I get ahold of management company to set up a time/day to sign lease. They inform us that we aren't on the lease.
Needless to say I'm freaked out.
I call broker, they say it's a mixup, they'll find out what's going on. When I finally hear back from broker they say " yeah it's rented to someone else, miscommunication, we'll find you something else"
Freakout continues...
So I call management company who have the lease and explain things. They say our application was never even looked at because the apartment had already been rented. They didn't even run our credit nothing.
In fact they send me the email that THEY send the brokers, informing them they already had an approved application for the apt, and that the brokers should show is another place they were suggesting in the email.
Deep breaths.
At this point we just want the brokers fee/application fees back.
Since then the brokers have dragged their heels every step of the way. They don't return calls or emails, and we had to go there in person only to be told it will take 7-14 business days to get the money back.
Monday will be 14 business days from the moment we started the refund process ( I have a confirmation email from them ) , and I've had no indication as to when I should expect my money back.
I can't believe it's taken this long as is, but I want to be as informed and prepared come Monday if we don't hear from them...
I have a signed piece of paperwork from them for the brokers fee, I have the receipt for the bank certified check I made out to them, and I have the email from the leasing agent basically saying "yeah, we didn't even look at your application."
Any suggestions on what I should do next? I have to assume we are getting our money but I'm nervous.
Sorry theis is so long winded, I think It was a bit therapeutic to type out!
I'm a real estate agent and judging by your issue it seems as if the broker is at fault.
A lesson for the future. Please never pay a brokers fee until the lease is signed and you now that you're getting the apartment.
To be honest with you I work with home owners and business owners because the rental side of real estate in this city is so bad that I just do not feel comfortable working with rentals with all these scammers around.
My broker sits on the board of realtors so if you need any legal advice just send me a PM.
Having worked in the business for many years, I'm sorry to say, there really isn't much you can do.
Legally, you are entitled to a return of the broker's fee, as you never signed a lease. The application fee, however, is not usually refundable. In practice, however, many brokers do not give a cash refund when a deal is not struck, but instead try to rent a different property to their client, so they can legally keep the fee. Even if you don't like the other property they show you, they will try to keep the fee on the grounds that they "did the work".
I suggest you read all the documents you signed, and read them carefully. They may explain the broker's refund policy further.
Yes, you can send in a complaint to the NYS Department of Licensing Services, but it will just result in a government investigation of the broker. With all the red tape, it would be months before a hearing would be scheduled, and in the worst case, the broker would face a fine or license suspension. The NYSDOS can't compel the broker to give you a refund. It's just a waste of your time. So is going to small claims court, because although winning your case will be easy, collecting from the defendant is another matter.
If the 14 days go by and they still won't cooperate, my suggestion would be to try and negotiate a partial refund. In the end, the broker is working on commission and is probably very upset about working hard for a deal which fell through, and just wants to be compensated.
Wait the promised time, keep records of all your conversations (email/text) and all proof where they state they will refund you. If they don't, go to small claims and file a suit. Then brokers wonder why they get a bad rep
i agree. also, post a review on yelp, file a claim on BBB and Division of Licensing (as another poster stated), etc. if they have a facebook, post your story on it, etc. Ruin the rep of the broker and his/her company. state the name of the motha**** and his/her company on the thread so people can avoid them.
The few times I've dealt with brokers, I've only paid an upfront deposit to hold the apartment. Full payment is always made on the day the lease is signed.
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