Newark Municipal Council Approves Ordinance Banning Tenant-Paid Broker Fees
The Newark Municipal Council has unanimously approved an ordinance proposed by Mayor Ras J. Baraka that prohibits landlords and their agents from charging broker fees to tenants. Under this new legislation, landlords and agents are now responsible for paying all fees imposed by the brokers they engage. This initiative is part of Mayor Baraka's 'Keeping Newark Affordable' legislative package, designed to alleviate the financial burden on tenants in a city facing a severe housing shortage. The ordinance also mandates transparency, requiring all tenant fees to be clearly advertised and an itemized written disclosure of all tenant-payable fees to be provided before a lease is signed. Furthermore, it makes it illegal to condition a residential property lease on a tenant engaging with a specific brokerage firm or agent. Violations of the ordinance carry a fine of up to $1,250 per improper fee charged.
