Court-Approved Agreement to Deregulate Apartment Is Void

Landlord and tenant settled a prior eviction proceeding based on owner use in court. Tenant received a 10-year unregulated lease, with a five-year renewal option. Tenant also “waived” all rights under rent stabilization and agreed not to file any claim with any agency or court raising any rent regulation claim. Ten years later, landlord sued to evict tenant when tenant failed to renew the lease in accordance with the settlement terms. The court ruled for landlord.

Tenant appealed and won. An agreement or settlement of a landlord-tenant dispute that waives the benefit of a statutory protection is unenforceable as a matter of public policy, even if it benefits the tenant. Landlord and tenant had signed the settlement agreement to end a case in which landlord sought tenant’s apartment for his owner occupancy. There was therefore a waiver of rent stabilization benefits and the agreement was void. Deregulation of apartments is only available through the means provided in the statute and not by private agreement.

8 Beach Street Realty Inc. v. Blagg: 48 Misc.3d 143(A), 2015 NY Slip Op 51313(U) (App. T. 1 Dept.; 9/11/15; Hunter Jr., JP, Shulman, Ling-Cohan, JJ)