LIEB BLOG

How current events impact your business and real estate holdings

Showing posts with label summary proceeding. Show all posts
Showing posts with label summary proceeding. Show all posts

Thursday, February 18, 2021

It's Time to Evict Your Family Members in an Eviction Proceeding

There has been a long standing dispute in the courts as to whether a family member can be evicted in an eviction proceeding (a/k/a, summary proceeding) or whether a protracted case was required in Supreme Court (a/k/a, ejectment proceeding). 


A summary proceeding is considered to be a "simple, expeditious and inexpensive means of regaining possession" of your property. Yes, it can take many months and thousands of dollars, but in contrast to an ejectment proceeding, that is fast and cheap. You can expect an ejectment proceeding to take years and to spend tens of thousands of dollars.


As you can see, whether a family member can be evicted in a traditional eviction proceeding is a big issue that can change the cost / benefit analysis of proceeding with the eviction proceeding in the first place. 


The answer to this long standing dispute was just provided by the appellate courts in Aloni v. Oliver when the courts ruled that a family member or romantic partner can be evicted just like everyone else in a traditional summary proceeding. 


The only exception to this general rule is that you cannot evict your spouse in a summary proceeding and must resort to an ejectment proceeding, unless there is an existing court decree to the contrary.


Are you ready to evict your family members who are taking advantage of you? 




Tuesday, June 30, 2020

NY's Eviction Moratorium is Constitutional - Read What Else the Court Tells Us

If you are a NYS landlord, you MUST read the decision from the case Elmsford Apartment Associates LLC v. Cuomo if you want to be on the top of your game.

We aren't going to discuss the results, beyond saying the Court ruled that Governor Cuomo can legally suspend evictions and more during a pandemic.

We focus on these other gems given to us by the Court - Every property investor (landlord, property manager, broker, flipper, etc.) should read and accept this reality before getting into the investment game:
Evicting a tenant – especially a residential tenant – in New York is a slow, cumbersome and extremely tenant-favorable process, especially when compared to analogous procedures in other states.
Governor Cuomo did nothing to impede the commencement of holdover proceedings… Nor does EO 202.28 suspend[] the landlords’ right to initiate a common law breach of contract action in the New York State Supreme Court to redress a tenant’s failure to perform its payment obligations under his or her lease.
Tenants will continue to accrue arrearages, which the landlord will be able to collect with interest once the Order has expired.
One who chooses to engage in a publicly regulated business… by so doing surrenders his right to unfettered discretion as to how to conduct same.
The expected costs of foreseeable future regulation are already presumed to be priced into the contracts formed under the prior regulation
New York landlords do not enjoy a constitutional right to realize a profit from their rental properties – let alone all the profits contemplated in each of their individual rental agreements.
If the tenant uses the security deposit to pay a month’s rent, and the tenancy ends before the deposit is fully replenished, the landlord can obtain a judgment for the amount expended in repairs.
A special shout-out to the eviction explanation -
To secure an eviction warrant from the housing courts, a New York landlord must serve the tenant a notice of nonreceipt of payment, and give the tenant one final chance to pay by making a demand of payment within 14 days. If the landlord is still owed payment after two weeks have passed, he may commence what is known as a summary proceeding by filing a petition in the civil court, returnable by the tenant within 10 days. If the tenant does not respond in ten days, the court may (but rarely does) issue an eviction warrant immediately. However, if the tenant does respond, however, a trial is set for eight days hence. The trial may be adjourned up to ten additional days if the parties so require in order to produce their witnesses. If, after trial, a judgment is entered for the landlord and the court issues a warrant for eviction, the Sheriff must give the tenant 14 days’ notice in writing prior to execution. There are the usual provisions for appeal and stays issue routinely so that non-defaulting tenants are not evicted before their cases are fully reviewed. But even if the evidence supports a judgment for the landlord, the housing court is not required to order the tenant’s immediate eviction. A tenant may obtain a stay of the issuance of the warrant for up to one year by showing that ‘it would occasion extreme hardship to the tenant or the tenant’s family if the stay were not granted’. Such stays are far from uncommon.
Still think that being a landlord is for you?

This hasn't diminished our motivation to invest in real estate, but as the Court makes clear - we respect the rules and adjust our prices / reserves to account for more rules in the future.

Some years there are less rules and other years there are more, but we know that a keen understanding of the rules will make us profitable as property investors.

If you want profitability too, you need to increase your compliance budget immediately and respect the rules of the game because, as you can see, fighting the governor's office is a losing battle.