A NYC Apartment Hunter Learns the Importance of Caveat Emptor

June 25, 2015 — Navigating the world of New York City real estate can be overwhelming and draining. That's why those who can afford to do so often seek the help and guidance of a broker. Broker fees can be quite high, so it's not surprising that, sometimes, the higher the fee, the higher an apartment hunter's expectations. High expectations, however, can result in disappointment. Such is the case with one woman whose daughter just rented an apartment in Manhattan. "To my dismay," she writes in this week's Ask An Expert column on Brickunderground, "I discovered on move-in day that there was a chemical dependency residential treatment program right across the street. The broker didn't say anything about this but took an almost $6,000 fee. Do I have any recourse?" Six thousand bucks may be a lot of dough, but Brickunderground experts still answered: no. "Your broker was under no obligation whatsoever to tell you about a nearby rehab center," they agree. Warburg broker Shirley Hackel adds: "Caveat emptor: Let the buyer beware. The agent is not obligated to point out that a residential treatment program is on the block. It's entirely possible that the agent was totally unfazed by it." In fact, the only way this dismayed mom might have some recourse is if either she or her daughter "specifically asked about the presence of a nearby rehab center and the broker lied," says Jeffrey S. Reich, a real estate attorney with Schwartz, Sladkus, Reich, Greenberg, Atlas. This case is certainly a reminder that when looking for a home in the big city, you shouldn't just be looking at the apartment. You should be looking at the building's immediate surroundings as well. Hopping on the ole Google machine doesn't hurt, either.