Lease Buyout Agreements for Tenants and Landlords

Lease buyout agreements are increasingly frequent in cities like New York City, where finding apartments is difficult. Buildings with long-term occupants or rent-stabilized flats see such transactions rather often. These agreements benefit landlords as well as tenants. Tenants could receive cash or greater freedom; landlords could plan for the future more effectively. However, these contracts can also be difficult and risky.

Understanding the legal issues before signing a lease buyout is important. Below, we explain what landlords and tenants need to know, key terms to include, and mistakes to avoid.