Tenant's Unrecorded Five-Year Lease Enforceable Against New Landlord

October 29, 2018

LVT Number: #29710

Landlord sued to evict unregulated tenant, claiming that tenant didn't have a current lease. Tenant disagreed and claimed that prior landlord gave him a five-year lease that was still in effect. While Real Property Law Section 291 requires that leases for terms of three years or longer must be recorded to be valid and binding on someone who buys a building, there is an exception to that rule if the purchaser had notice of the tenancy. Tenant argued that landlord had notice and therefore should have inquired further as to the tenant's actual status.

Landlord sued to evict unregulated tenant, claiming that tenant didn't have a current lease. Tenant disagreed and claimed that prior landlord gave him a five-year lease that was still in effect. While Real Property Law Section 291 requires that leases for terms of three years or longer must be recorded to be valid and binding on someone who buys a building, there is an exception to that rule if the purchaser had notice of the tenancy. Tenant argued that landlord had notice and therefore should have inquired further as to the tenant's actual status. The court ruled for tenant and found that tenant's unrecorded five-year lease was binding and enforceable.

538 Hart St. Mgmt. v. Muhammad: Index No. 93065/17, NYLJ No. 153716798 (Civ. Ct. Kings; 8/30/18; Finkelstein, J)

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