Buying house w/ low-rent tenan
I’m considering the purchase of a 4-family house in Brooklyn that comes with 3 existing tenants. 2 are market rents, 1 is an elderly tenant with an interesting contract made at the time the house was sold 2 years ago (all info based on seller): The right to rent her apartment for $750/month (market is…
I’m considering the purchase of a 4-family house in Brooklyn that comes with 3 existing tenants. 2 are market rents, 1 is an elderly tenant with an interesting contract made at the time the house was sold 2 years ago (all info based on seller): The right to rent her apartment for $750/month (market is ~$2500) until 4/2010. Supposedly she is the mother of the former owner, has been living in the house before, but is not rent-regulated.
I’m considering to buy the house and use the owner’s apartment until 4/2010, then take over and renovate her space + combine it and the next floor into a duplex.
My question is: Is there a way to find out for sure whether she is rent-regulated or not, and – if she isn’t – to make it legally binding for her to move out next year as promised or take one of the other apartments in the house at market rent. I wouldn’t want to buy the house if there is a risk that she finds a legal basis to remain.
I would speak to a lawyer and speak to the tenant directly.
Find out what she thinks, intends, believes her rights to be.
a lease is a contract is an agreement: a contract/agreement for real estate for a period of time is a lease. It doesn’t matter what it is called its the same thing. As long as it is in writing( on as much as a piece of toilet paper) and signed by the previous owner at the time the owner owned the property its is binding on all subsequent owners(assuming no fraud)
smeyer418- I’m curious that the OP used the word “contract” rather than lease. If this agreement is something other than a lease, would it still be binding on subsequent buyers?
dreamking a contract to rent is normally called a lease. (a lease is a contract to rent real estate) It technically transfers a right to occupy a property or a part of it(an apartment) for a term (months or years or can be a life estate). It is binding on all the owners or subsequent owners here and everywhere unless it has a clause terminating it upon a sale(normally a very hard thing to get even in Pahoe Wyoming). You take the property subject to all such encumbrances on the property. Rent control and stabilization(where applicable) are also encumbrances on the property they have the added function of encumbering the remainder even after the lease expires. You of course can refuse to buy it unless its terminated but that normally means the current owner has to buy it out….not an easy thing.
smeyer418, thanks for the detailed info!
dreamking, to my knowledge, as a buyer you have to respect the existing rental agreements and their terms until they expire.
Why would a contract between a tenant and the former landlord have any bearing unless you agreed to it in the transfer? Her only real protection is if it’s rent-regulated.
Are buyers obligated to accept the terms of a rental agreement between tenant and former owner? I wouldn’t have thought so, even in NYC.
http://www.dhcr.state.ny.us/Rent/FactSheets/orafac21.pdf
found it. and again it has no application unless the apartment is rent restricted under the law. ….
http://www.dhcr.state.ny.us/Rent/
State rules on housing.
I looked to see if there was anything about seniors and couldn’t find any. I know there are special rules about an owner in rent controlled stabilized apartments trying to get back for their own use from an over 65 tenant and special rules for an eviction condo/coop plan(existing housing) for over 65 but uncontrolled apartments none(there are also special rules for Mitchell Lama housing)
http://www.nyc.gov/html/dof/html/property/property_tax_reduc_scrie.shtml
scrie has nothing to do with a tenants right to maintain the apartment. Its a tax offset program but it is available for rent controlled and rent stabilized tenants only.