New York Laws
Requirement to Record: A lease with an option to purchase is not required to be recorded. However, it must be recorded to establish priority against any third party claim.[1]
Expiration: Constructive notice does not explicitly expire by statute.
Maximum Term: There is no specific legal limit to the maximum term for a lease with an option to purchase.
No Duration: If the lease does not include a duration for the option to purchase, the option will expire automatically at the end of the lease.
Signing Requirements: Must be in writing and signed by the seller.[2]
Required Disclosures (9)
1. Allergen Hazards Disclosure (NYC only) – This form and attached brochure must be given to the tenant to confirm the landlord has performed an inspection of indoor allergen hazards, including mold, mice, rats, and cockroaches.[3]
2. Bedbug Disclosure (NYC only) – Landlords must notify tenants if their properties had bedbug infestations in the previous year.[4]
3. Copy of Signed Lease (conditional) – Tenants must receive a signed copy of the lease agreement within 30 days of move-in.[5]
4. Flood History Disclosure & Risk Notice – Leases must provide notice if the property is located in a FEMA-designated floodplain, special flood hazard area, or moderate risk flood hazard area. They must also disclose any prior flood damage and contain the following language: “Flood insurance is available to renters through the Federal Emergency Management Agency’s (FEMA’s) National Flood Insurance Program (NFIP) to cover your personal property and contents in the event of a flood. A standard renter’s insurance policy does not typically cover flood damage. You are encouraged to examine your policy to determine whether you are covered.” [6]
5. Lead-Based Paint Disclosure & EPA Pamphlet (conditional) – Landlords of properties built before 1978 must notify tenants that the walls and ceiling could contain lead-based paint.
6. Notice of Applicability of Good Cause Eviction Law – Leases must notify tenants of their rights under the New York State Good Cause Eviction Law.[7]
7. Security Deposit Receipt (conditional) – Landlords collecting security deposits must give tenants the name and address of the bank where the deposit is being held.[8]
8. Sprinkler Disclosure – Every lease shall include, in bold type, whether a sprinkler system operates on the property and if so, when it was last inspected and maintained.[9]
9. Stove Knob Covers (NYC only) – For tenants with children under six years of age, landlords must provide stove knob covers and must notify tenants in writing that this is their obligation. Landlords should keep a record of notification.[10]
Seller’s Disclosures (1)
1. Property Condition Disclosure Statement (required) – On the form, the seller must describe the property’s environmental, structural, and mechanical systems and their conditions.[11]