Prior Settlement Exempted Apartment from Rent Stabilization

November 1, 2001

LVT Number: 15406

Facts: Landlord sued to evict tenant from loft unit. Tenant claimed that he was subject to rent stabilization. Tenant claimed also that landlord was an illusory prime tenant of the unit. Landlord showed that in 1983, prior landlord, prior tenant, and prior subtenant signed a settlement agreement in court. Under the agreement, prior landlord bought subtenant's loft fixtures for much more than their value, and the sublease and lease were canceled. This occurred before the loft building was legalized and became subject to rent stabilization. Court: Landlord wins.

Facts: Landlord sued to evict tenant from loft unit. Tenant claimed that he was subject to rent stabilization. Tenant claimed also that landlord was an illusory prime tenant of the unit. Landlord showed that in 1983, prior landlord, prior tenant, and prior subtenant signed a settlement agreement in court. Under the agreement, prior landlord bought subtenant's loft fixtures for much more than their value, and the sublease and lease were canceled. This occurred before the loft building was legalized and became subject to rent stabilization. Court: Landlord wins. Under the Loft Law, since prior landlord purchased prior tenant's rights to the unit before the building was legalized, the unit became exempt from rent stabilization.

Low v. Cullen: NYLJ, 10/3/01, p. 20, col. 1 (Civ. Ct. NY; Hoffman, J)

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