Beware online ads promising the perfect rental apartment with no broker fee - nearly one-third of them are lying, a City Council report revealed yesterday.
The Council's Oversight and Investigations Committee recently contacted 223 real estate agents who advertised "no fee" apartments on two popular online Web sites: craigslist.org and backpage.com.
The investigators discovered that 31% of the so-called "no fee" apartments did, in fact, have broker fees.
"There's no place in this city for deceptive and misleading sales practices," said Councilman Eric Gioia (D-Queens), the committee's chairman, during a news conference at City Hall.
"We need to make sure that - however it is that you're searching for an apartment - the deal you're getting is an honest one," Gioia said.
Carl Ferrer, founder of backpage.com, praised the Council for highlighting the problem and pledged to work with the city to improve the integrity of online rental listings.
"We'd like a way to discover these bad users, remove them and prevent them from posting in the future," he said.
Gioia and other Council members called on the city's Department of Consumer Affairs to crack down on fraudulent online advertising by monitoring online ads and working with the state to revoke the real estate licenses of sleazy brokers.
Dina Improta Roskin, a spokeswoman for Consumer Affairs, said, "We look forward to working with the Council to both strengthen those protections and expand our efforts to educate consumers."
Originally published on October 27, 2006 |