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The doctrine of "illusory tenancy" is not new..here is some legal authority

Posted by hawk on September 05, 2000 at 21:22:00:

Because of several comments on this board about an apparent unawareness of the doctrine of illusory tenancy (see my posts of 8/6 and 8/10) here is some legal authority explaining the doctrine: "sub-tenant wins stabilized lease under doctrine of illusory tenancy" Greer v. Erwin, New York Law Journal, Sept. 22, 1993, page 22, col. 6 and "Illusory Tenancy, or when is a tenant not really a tenant?" New York Law Journal, June 16, 1996, page 5.
As one court simply explained the doctrine: "when there is an illusory tenancy the owner will be required to recognize the actual occupant as the real tenant, disregarding the illusory tenant. The occupant is then entitled to a renewal lease in his or her own name at the lawful stabilized rent. The illusory prime tenant is then legally responsible for refunding all overcharges collected from the occupant." Conti v. Citrin, 505 N.Y.S.2d 481, 484 (Sup. Ct., N.Y. County 1985). I hope this helps.

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