Highly Effective Criminal Defense, Real Estate And Estate Planning
Attorney Bryan E. Cameron

Buying a co-op with rent-stabilized tenants living there

On Behalf of | Jun 14, 2021 | Uncategorized

Residents and businesses in Sayville and other parts of New York may want to know more about whether it’s possible to buy a co-op while rent-stabilized tenants are living there. These cooperatives are a popular form of communal ownership of residential properties. Rent-stabilized homes and apartments may be part of that cooperative; they have occupancy by tenants. This can have an effect on certain property ownership rights.

What are the reasons behind rent-stabilized cooperatives?

In some cities, this protects tenants from sharp rental increases. They have the right to renew their leases if they wish. They cannot be evicted if the landlord wants them out; the landlord must allow lease renewal. The rent-stabilized tenant apartments do not, however, prevent the sale of the cooperative. One may buy or sell shares in cooperative housing.

Selling both stabilized and not rent-stabilized properties

When it comes to selling your shares of this real estate, it does not matter whether the property has rent-stabilized apartments or not. The buyer, however, will inherit the rent-stabilized apartments with tenants and their leases.

How does a landlord evict rent-stabilized tenants?

Housing laws usually require honoring tenants’ leases. The landlord can renew the leases when they expire. Sometimes, a landlord has rental agreements with the tenants for a long time. After the sale, you must give tenants proper notification to evict them if you plan on living in the rent-stabilized unit that you bought.

Heirs may inherit a tenant’s lease

In some places, tenants of rent-stabilized apartments may be able to pass on their units to their heirs. In New York City, these stabilized housing units may be inheritance assets.

Whether you are buying or selling real estate, you may want to consult with an experienced attorney well-versed in real estate law. They may help with the complex documents and the legalities of real estate matters, including negotiation of buying or selling agreements.