Airbnb accused in lawsuit of running illegal brokerage

Midtown-based Parker Madison Partners is seeking class-action status

New York /
Nov.November 17, 2016 06:04 PM

A Midtown-based commercial brokerage filed a lawsuit against Airbnb on Thursday, alleging that the short-term rental listing site is running an illegal brokerage business.

Parker Madison Partners argues that because Airbnb helps people find apartments in return for a fee through its website, it should be registered as a brokerage firm.

“Although Airbnb blatantly acts as a real estate broker, it is neither registered nor licensed with New York State,” the complaint reads, adding that Airbnb “had no right to receive any commissions for its real estate broker services within the State of New York.”

The firm is seeking class-action status, as well a court order barring Airbnb from real estate transactions in New York “until its conduct is modified within the legitimate boundaries of law and ethics.”

In February, two former Airbnb hosts filed a similar class-action suit against Airbnb.  Both lawsuits were filed by attorney Lucas Ferrara and Jeffrey Norton of Newman Ferrara LLP.

A spokesperson for Airbnb said the firm does not comment on litigation.

Last month, New York Gov. Andrew Cuomo signed a bill into law that raised the fine for illegal Airbnb listings to $7,500. That same day, Airbnb filed a lawsuit against Cuomo, Attorney General Eric Schneiderman and Mayor Bill de Blasio alleging “an unjustifiable content-based restriction on speech in violation of the First Amendment.”


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)
The Airbnb crackdown continues: City targets three more buildings
The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)
Airbnb host narrowly clears hurdle in First Amendment claim against city
Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)
Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Airbnb Luxe launched without listings in one of their biggest potential markets — why?
 Scottie Pippen and the Chicago property (Getty, Airbnb)
Olympic deal: Scottie Pippen lists Chicago mansion on Airbnb for $92
Olympic deal: Scottie Pippen lists Chicago mansion on Airbnb for $92
Airbnb CEO Brian Chesky (Getty, iStock)
Where Airbnb lost the most listings during the pandemic
Where Airbnb lost the most listings during the pandemic
Daniel Brodsky and One Columbus Place (Getty/Patrick McMullan, Brodsky)
Tenant skipped rent for a year amid “parade” of illegal Airbnb guests: lawsuit
Tenant skipped rent for a year amid “parade” of illegal Airbnb guests: lawsuit
ReAlpha CEO Giri Devanur (Giri Devanur, iStock)
ReAlpha plans to spend $1.5B to buy short-term rental homes
ReAlpha plans to spend $1.5B to buy short-term rental homes
Seal Beach’s landmarked water tower house (Compass)
Water tower-turned-home on the Pacific offered for $5M
Water tower-turned-home on the Pacific offered for $5M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...