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.
Discount the risk or go for a walk.
***Bid half off peak comps***
thanks, smeyre418. I couldn’t remember which agency would have the information. My brain cells die all the time! 🙂
Its the state the controls rent control and rent stabilization not the DOB
Its the state the controls rent control and rent stabilization not the DOB
1. Most houses under 6 are not rent regulated.
2. If a tenant has a lease you are buying subject to the lease. Unless the tenant is rent regulated(which would be unusal for a 4 family and requires the building be registered with DHCR which it probably is not) when the lease is up you can get back possession of the apartment(even if the person is above 65 its only if the apartment is rent regulated that the special rule attaches) but expect it to take about a year to get the apartment back- no self help is allowed.
3. get an the seller to get an estoppel letter from the tenant that states.
she only has a lease through 2010.
she has no other right to the apartment.
the apartment is not rent regulated etc and what ever else your lawyer and you want in the letter….make sure it it notarized with her signature…
It should be on record if that apartment is rent-regulated, at the DOB. I am not sure what the laws protecting elderly tenants are but if the apartment is not under rent-regulation there are a couple of questions you can ask.
1. Does her contract with the former landlord restrict you to that rent for the length of the contract? It sounds like the seller is trying to make keeping to that contract part of the sale. Whether or not he can legally make you to abide by the contract- since it seems to be a personal agreement- is the question.
2. If she stays, whether or not she is supposed to, are you allowed to then charge her market rate. If the apartment is not under rent regulation, you should be able to charge market rate- which I doubt she will want to pay.
But again- like everyone says- a lawyer who specializes is the person to ask. We’re just conjecturing.
Echo the previous posters–the legal status of the contract notwithstanding, if she decides to stay you have little expectation of getting the apartment, at least not without a protracted and ugly court fight. If you must have that space, pass on this deal.
I don’t know much about SCRIE, but if you’re really interested in this house I’d talk to a lawyer–probably someone who specializes in elder law–before giving up on it. The key question, imho, is if signing a contract promising to move on a certain date violates a right she’d have to stay if protected by SCRIE. Generally a contract that dilutes or eliminates the protections people have by law is unenforceable.
Buy it! and I hope that elder lady lives to be 150 years old you greedy egotistical bum.