On Wed, Dec 1, 2010 at 3:38 PM, Derek J. Balling <dr...@megacity.org> wrote: > On Nov 29, 2010, at 10:25 PM, William Herrin wrote: >> There are a couple forms of shared billing. > > There's a third kind you failed to mention that doesn't require equal footing > of the parties. The broker. > > I might pay an apartment broker $X to help find me an apartment. > In turn the apartment broker might match me up with an apartment, > and charge the landlord $Y for a successful tenancy.
Hi Derek, For the most part the apartment broker process doesn't work quite the way you think. Generally he either gets a fee from you to find you the best apartment or a fee from the landlord to find him a tenant (a "no fee" listing). But not both. Read http://www.nakedapartments.com/blog/broker-fees-explained/. Sometimes the landlord will agree to cover part of the broker's fee but the legal fiction is that the landlord is paying the renter who is paying the broker. Also bear in mind that apartment brokers tend to be a New York City phenomenon where regulated rent stabilization laws and related heavy regulation apply. They exist elsewhere but all top 20 Google hits for "apartment broker fees" were NYC. Let's consider a related example that's more ubiquitous than New York City apartment brokers: the real estate agent. The seller's agent collects a commission. So does the buyer's agent. If they're the same person, they get both commissions. Right? http://homebuying.about.com/od/glossaryd/g/DualAgency.htm "Dual agency is not legal in all 50 states." http://homebuying.about.com/od/realestateagents/qt/92807_DualAgncy.htm "Dual agency must be agreed to in writing between [all three] parties." The problem with dual agency is it's a classic conflict of interest. That's why both buyer and seller have to agree to it and go in eyes-wide-open, even where it's legal. What's more, in the highly competitive real estate market, savvy buyers know it's time to apply the screws -- the agent will earn more money even if he takes a big hit on the buyer's commission. Kinda the opposite of the monopoly/duopoly ISP who doesn't seek your permission in dealing with anyone else. Finally, realize that in both cases (real estate agent and apartment broker) you're dealing with a competitive negotiated process. The law allows -many- things in negotiated contracts that are flat illegal in the contracts of adhesion typically offered to the residential Internet buyer. Regards, Bill Herrin -- William D. Herrin ................ her...@dirtside.comĀ b...@herrin.us 3005 Crane Dr. ...................... Web: <http://bill.herrin.us/> Falls Church, VA 22042-3004