In 23 Realty Assoc. v. Teigman (13 AD2d 306, 624 NYS2d 155 [1st Dept 1995]), the issue before the court was whether residential leases were covered by the New York City Consumer Protection Law and if so whether the broker for the apartments could be liable for violating that law.
The Court held that residential leases did come within the ambit of the Consumer Protection Law and that a broker could be held liable for violating that law by renting hotel rooms as apartments.
The Court held that the broker could be liable even if the selling principal had represented that the building was an apartment building because "a real estate broker should have a working knowledge of the legal status of the property he is marketing." (Id. at 308.)