Brokers Fees Deposits Backing out - Long and Need Advice

Two week ago DH and I started the ball rolling on renting a 2 bedroom condo. To be perfectly honest if there was no DH, I would not have agreed to rent the place. It was more DH who was pushing for it. The only positives are that it has a washer/dryer, attic space for storage, gated with security after 9pm. We met with the condo board Monday and have no doubt that we will be approved. The landlord is out of town until Saturday and we are expected to sign a 2 year lease come Tuesday or Wednesday. My problem is that we were given a copy of the bylaws when we met with the condo board. When I read them over at home I had some serious concerns. Most importantly was that we were told we could BBQ when in fact that was not the case. Additionally, the attic space we were told we could use is considered common area and we are not allowed to use it. Also, my brother has just gotten a cute little Cavalair King Charles Spainel. He does not go anywhere without this dog. According to the condo rules, guests with dogs are not allowed and subject to $500 fine. I am just about ruled out. The basic gist I got from reading the bylaws was stay in your unit and dont come out. They make it very difficult to socialize in common areas. It appears to be a much "older" crowd

After reading all of this, DH and I were very put off so I started looking at what else was out there. We just got back from looking at a coop which while is further east is less money and much bigger. It would appear that the people are younger. Aside from not having a washer/dryer in the unit itself (does have laundry room conveniently located) there are not many negatives....except for the broker. There is something that has rubbed me the wrong way about him. First off in order to "get the ball rolling" he requires 1st month/security/broker fee upfront and has stated that should something go wrong it is non-refundable....this is for his time and effort. Now I do not have a problem putting his broker fee up for a deposit -- and losing it if I backed out, but how can I sign a lease if I havent even been approved by the board yet? He has also said that these "fees" are non-refundable should we not be approved. First, WE have to pay a $425 board application fee....we are out that money whether we are approved or not. Second, can he actually take my 1st mo and security upfront before I have signed a lease? I posted earlier about this guy and I will say that we did meet with him at his real estate office so I "assume" he is a licensed real estate agent. I dont know, something about forking over 4K to "get the ball rolling" sounds a bit off. Even if he were to refund my 1st mo and security, that is still a hunk of change that I have to "hunt" down and get returned to me. Am I completely off base here? Is this normal practice? I would have told him to get the ball rolling tonight but for this deposit nonsense. Any body have any words of wisdom?

Re: Brokers Fees Deposits Backing out - Long and Need Advice

Doesn't sound right to me...as both a renter and a real estate agent

When I rented my current place - I didn't pay until I signed the lease- with bank checks made out to the landlord - no real estate fee but in that past I paid them at the lease signing as well

I have never paided to apply to a place...maybe $25 for a credit report to be pulled but not over $400

I would keep looking

Re: Brokers Fees Deposits Backing out - Long and Need Advice

Beth:

thanks for your reply. Could this be different because it is a coop? I sent my concerns to the REA and this was his reply:

The initial binder and application with me will clearly state the lease” subject tot the board’s approval”. As I mentioned part of you board application requires the board to review the lease. They can not review a proposed lease it must be the actual executed lease and of course you can not execute a lease with out tendering the money. While on the topic of money security rent and brokers fee are required as the deposit in cash with no exceptions and no installments. No other form of payment is accepted and company receipts will be issued. We’ve been doing this for almost two decades so we have trimmed all the fat to stream line the process. Anything else is a waste of time requiring extra steps, multiple appointments, additional bookkeeping and will not work.

Is there any way to check out a RE company (do they register with the BBB)? Is there a way to check out their license? We really like the unit and the community

Re: Brokers Fees Deposits Backing out - Long and Need Advice

LIBOR i believe is where you can check out a realtor... Long island board of realtors..

I would contact the COOP director immediately and let them know you are very interested, however, may be held up due to some practices of your realtor. just as an FYI...

Re: Brokers Fees Deposits Backing out - Long and Need Advice

I couldn't tell from his answer if that means you get a refund if not approved?

I have rented in 1 coop building in nyc and I did not have to be approved

He should not get paid if you are not approved...b/c then he will still have to rent the apartment and collect another fee from the person that takes it

The department of state should also be able to tell you if he is an agent and if the company is legit