Taking Over a Townhouse for Owner's Personal Use
Real estate brokers who are selling townhouses and brownstones which are occupied by rent-stabilized tenants should consider marketing the property to an individual who wishes to occupy the entire building for his / her own personal use.
Of course the real estate broker must be careful not to give legal advice, and must warn the prospective purchaser that he or she should consult with a landlord tenant attorney for an opinion regarding the viability of the owner use option prior to signing a contract of sale. Similarly, the seller must be warned not to make any written representations regarding the viability of an owner use proceeding.
If the new owner has a good faith intention of occupying the subject building for his / her own use - or for the use of an immediate family member - as a primary residence in the City of New York, the housing court may allow the new owner to evict the rent stabilized tenants. The new owner must be an individual or individuals - not a corporation.
In a case called Pultz v. Economakis, the owner sought to recover all fifteen rent stabilized apartments in the five story apartment building. The highest court of the State of New York - the Court of Appeals - decided that this was okay, because the rent stabilization code permits an owner to recover one or more rent stabilized apartments for owner's personal use. A new law has been proposed to limit an owner to the recovery of only one rent stabilized apartment in owner's building, but due to the current stalemate in Albany, it has little chance of passing this year.
If the rent-stabilized tenant - or tenant's spouse - is 62 years of age or older, or is disabled, then the new owner cannot obtain possession of the tenant's apartment unless the new owner offers the tenant (1) equivalent of superior accommodations (2) at the same or lower regulated rent (3) in a closely proximate area. (Some judges have found that this requirement applies to the tenant's elderly or disabled gay life partner, in addition to the tenant's spouse). Since most owners will find it difficult or impossible to offer alternate accommodations, the tenant's advanced age or disability may preclude or derail an owner use holdover proceeding.
For this reason, real estate brokers should consider asking sellers of brownstones or townhouses for a breakdown of the ages and disability status of their rent stabilized tenants and their tenants' spouses.
Of course the real estate broker must be careful not to give legal advice, and must warn the prospective purchaser that he or she should consult with a landlord tenant attorney for an opinion regarding the viability of the owner use option prior to signing a contract of sale. Similarly, the seller must be warned not to make any written representations regarding the viability of an owner use proceeding.
If the new owner has a good faith intention of occupying the subject building for his / her own use - or for the use of an immediate family member - as a primary residence in the City of New York, the housing court may allow the new owner to evict the rent stabilized tenants. The new owner must be an individual or individuals - not a corporation.
In a case called Pultz v. Economakis, the owner sought to recover all fifteen rent stabilized apartments in the five story apartment building. The highest court of the State of New York - the Court of Appeals - decided that this was okay, because the rent stabilization code permits an owner to recover one or more rent stabilized apartments for owner's personal use. A new law has been proposed to limit an owner to the recovery of only one rent stabilized apartment in owner's building, but due to the current stalemate in Albany, it has little chance of passing this year.
If the rent-stabilized tenant - or tenant's spouse - is 62 years of age or older, or is disabled, then the new owner cannot obtain possession of the tenant's apartment unless the new owner offers the tenant (1) equivalent of superior accommodations (2) at the same or lower regulated rent (3) in a closely proximate area. (Some judges have found that this requirement applies to the tenant's elderly or disabled gay life partner, in addition to the tenant's spouse). Since most owners will find it difficult or impossible to offer alternate accommodations, the tenant's advanced age or disability may preclude or derail an owner use holdover proceeding.
For this reason, real estate brokers should consider asking sellers of brownstones or townhouses for a breakdown of the ages and disability status of their rent stabilized tenants and their tenants' spouses.
posted by Linda Rzesniowiecki at
8:25 AM
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