Libani v. Concorde & Cie

Libani v. Concorde & Cie (269 AD2d 213) involved an interim lease during the condominium conversion phase. The tenants moved from a rent-stabilized apartment to a condominium unit and signed an interim lease and purchase agreement agreeing to purchase the unit when the Attorney General declared the plan effective. The lower court ruled that one of the amendments to the condominium plan represented that in the event the plan is declared effective, any nonpurchasing original tenant of a vacant unit, which these tenants were, would not be evicted for failing to purchase the vacant apartment or based on the expiration of their lease or tenancy. More importantly, the lower court further ruled that the interim lease which the tenants signed did not contain a cross default provision with their purchase agreement. Thus, the default provision contained in the purchase agreement did not constitute a default under the interim lease since no similar provision was recited in said lease. The Appellate Division affirmed, holding that the parties' interim lease and purchase agreement did not contain cross default provisions thus distinguishing Dash Realty Corp. v. Barbosa (198 AD2d 89).