Agreement Wasn't an Enforceable Lease

January 1, 2009

LVT Number: #20931

Prior owner of a house lost the building in foreclosure. Prior owner's attorney set up a transaction by which the new owner sold the building to the attorney's secretary. The secretary and prior owner signed an agreement that she would sell the building back to prior owner in a year. In the meantime, prior owner was to pay for building utilities and all related expenses while he lived in the building. The secretary later sued to evict prior owner for nonpayment of rent. She claimed prior owner owed her $32,000 in back rent. The court ruled against the secretary and dismissed the case.

Prior owner of a house lost the building in foreclosure. Prior owner's attorney set up a transaction by which the new owner sold the building to the attorney's secretary. The secretary and prior owner signed an agreement that she would sell the building back to prior owner in a year. In the meantime, prior owner was to pay for building utilities and all related expenses while he lived in the building. The secretary later sued to evict prior owner for nonpayment of rent. She claimed prior owner owed her $32,000 in back rent. The court ruled against the secretary and dismissed the case. The agreement between the secretary and prior owner wasn't a lease. There was no reference in the agreement to payment of rent, so there was no landlord-tenant relationship.

Jagroop v. Ruiz: NYLJ, 12/18/08, p. 30, col. 1 (Civ. Ct. Bronx; Madhavan, J)

Topics

More like this