Title
ORDINANCE PROHIBITING THE IMPOSITION OF CERTAIN BROKERAGE COSTS UPON RESIDENTIAL TENANTS IN THE CITY OF NEWARK
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WHEREAS, the City of Newark (the “City”) has a substantial interest in protecting residential tenants and prospective tenants and promoting access to safe and affordable rental housing within the City; and
WHEREAS, individuals seeking residential rental housing may incur significant upfront costs in connection with securing a rental unit, including security deposits, advance rent, applicable fees, moving expenses, and other costs associated with establishing a new residence; and
WHEREAS, the imposition of fees, commissions, or other charges for real estate brokerage services upon tenants and prospective tenants can substantially increase the upfront cost of securing residential rental housing and create an additional financial barrier to obtaining housing; and
WHEREAS, in certain residential rental transactions, a tenant or prospective tenant may be required to pay fees or commissions for brokerage services, notwithstanding that the brokerage firm or real estate professional was retained or engaged by, or provided services on behalf of, the landlord; and
WHEREAS, the Municipal Council finds that fees and commissions for brokerage services associated with the rental of residential real property should not be imposed upon or passed through to tenants or prospective tenants and that a landlord that retains or engages a brokerage firm should remain responsible for the costs of the brokerage services obtained by the landlord; and
WHEREAS, the Municipal Council further finds that tenants and prospective tenants shall receive clear and conspicuous disclosure of all fees for which they will be responsible in connection with the rental of residential real property before entering into a lease or other rental agreement; and
WHEREAS, legislation is presenting pending before the New Jersey Legislature that would establish additional protections co...
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