A protected Occupant of an IMD unit may sell the Occupant’s rights to the unit to the Owner of the building. These rights are the protections granted to IMD occupants under the Loft Law. There can be only one sale of rights per unit.
The Tenant and the Owner negotiate the purchase price for the tenant’s rights. Although the consideration supporting the sale is usually money, other examples of consideration may include the waiver of rent owed if the Tenant legally owes back rent, the right to reside in another apartment at a reduced rent or any other type of consideration agreed to by the Tenant and the Owner.
Protected occupants are urged to consult an attorney if they are thinking of moving out of an IMD unit or if they receive an offer for a buy-out from the building Owner. If the Tenant and Owner agree to a sale, the Owner will ask the Tenant to sign documents to record the sale. Tenants should carefully read any paperwork from the owner before signing the documents.
See 29 RCNY § 2-10 for more information.
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