Legality of lease made after foreclosure proceedings have begun

New York, NY Viewed 39 times. Posted about 1 month ago in Foreclosure

I recently learned that my landlord is in default of her mortgage and there has been a court order for the building to be in control of the bank and monthly rents are to be paid to a court appointed receiver. The bank plans to sell the building to cover the defaulted mortgage.

My problem is the court order took place in may 2009 and I did not sign my lease until August 2009, not knowing about the foreclosure. I am being told by the receiver that landlord was not supposed to sign new leases. Unfortunately for both of us, she did.

I need to know if my lease is valid at all. Ultimately, do I have any rights to be able to stay in my apartment to the end of my lease? Or is my lease invalid and I can move without having it be considered a "lease break?

Answers (1)

William Chuang

This attorney is licensed in New York. Posted about 1 month ago.

I don't have all the facts of your case in front of me, and I am not your lawyer, so please don't take what I'm going to write as legal advice.

A landlord is not allowed to convey what she does not hold. Clearly, if I am not the owner of a house, I cannot rent it out. If the house was put into receivership, and the court stripped the landlord of the authority to issue leases, as you say, then it is likely that she cannot sue to enforce the lease because she did not have the right to enter into the lease.

Talk to your landlord and ask if she'll pursue legal action against you in light of this new information. It may be the case that she'll just let you go if you tell her that you know what's going on.

However, before breaching a contract, you should retain a qualified attorney who has had a chance to review the details of your particular case.