State Investigates $20K Broker's Fee For Cheap Upper West Side Pad

UPPER WEST SIDE, NY — A staggering $20,000 broker's fee on a rent-stabilized Upper West pad has spurred state authorities to investigate, according to officials and multiple reports.

The Department of State will investigate City Wide Apartments broker Ari Wilford, who reportedly collected nearly $20,000 from the new tenant of a $1,725-per-month one-bedroom at 206 W. 104th St., a spokesperson confirmed to Patch.

There is no specific statute or regulation that determines the amount of a brokers fee, but a spokesperson from the Department of the State told Patch the following — "Real estate licensees are obligated to act with honesty in their dealings with the public, and cannot perpetrate a bait-and-switch, charge exorbitant commissions that have no reasonable relationship to the work involved in earning the commission, or have undisclosed conflicts of interest."

Wilford initially asked for a round $20,000 but was bargained down to $19,500 by the new tenant of the six-story prewar on the corner of Amsterdam Avenue, the New York Post reported.

Broker's fees are generally equal to one month's rent but at $19,500, Wilford would be earning nearly a year's rent from his client.

City Wide did not immediately respond to Patch's request for comment, but head Michael Jacobs defended the broker fees to the Post, especially when involved with rent-stabilized apartments, but also appears to have removed Wilford's profile page.

“Brokers provide great value to their clients and have been working harder than ever," Jacobs told the Post.

"The hyper-competitive process for getting a rent-stabilized apartment and the current system surrounding these units are what lead to these high fees that we’re seeing."

This isn't the first time Wilford has asked for colossal broker fees, according to the Post.

Wilford reportedly requested a $8,000 fee for a $1,985-a-month rent-stabilized one-bedroom in 2020 and, in 2019, demanded $10,000 for a $2,400-a-month one-bedroom in Gramercy Park.