Legal Tip – Rental Agents Beware!

Feb 09, 2018

Licensees acting as a Landlord’s Agent or Property Manager for properties with 3 or less rental units who supply leases to prospective tenants may be held liable by DOS for non-compliance with this new law even though the law does not specifically mention real estate licensees.  

Real Property Law §235-bb requires the owner of real property, consisting of three or fewer rental units, to provide tenants, before signing a residential lease or rental agreement entered into after 11/27/17, a conspicuous notice in bold face type as to whether a Certificate of Occupancy (if such certificate is required by law) is currently valid for that dwelling unit. The law states that an owner who provides the tenant with an actual copy of the valid and up-to-date Certificate of Occupancy will be deemed to have complied with this notice requirement. 

The notice should be included in or with the lease. A tenant cannot waive his/her right to receive the notice.  If this notice is not provided to the tenant, the lease is deemed void.

Any broker or brokerage that provides leases for rental transactions should have those leases reviewed by their attorney for compliance purposes.