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If an applicant has used a broker to find an apartment, and has gotten "approval" but not yet met to sign the lease, then backs out because he/she has lost their employment, who is entitled to the good faith binder? Does the landlord get to keep this, or does the the broker's company get to keep this? In New York city, some apartment brokers use language that says that "If the application is withdrawn... the fee for brokerage services and/or good faith binder shall be deemed a consultation fee and shall have been duly earned by the broker." However, I thought that the landlord earned the good faith binder?
Check with the laws of your area. If you're in NYC, they're laws are way different than other parts of the country. I would say it would probably boil down to whatever the contracts say. I'm sure the brokers are very compliant with the law as their licenses depend on it and wouldn't put anything in their contracts that isn't legal. So if they're saying they get the fee in the event of a cancellation, then I'd say it's theirs.
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