Judge Scott Fairgrieve
Landlord Levy sought to recover possession of the subject premises in this holdover proceeding after becoming the title owner under a foreclosure sale. Levy testified that at the time she purchased the property she had no knowledge of respondents being tenants at the premises. Tenant Pedersen claimed she received a lease ending Dec. 31, 2016, from prior owner, Paragallo, her ex-employer. Levy noted she searched the Nassau County Clerk’s Office records, but did not see any recorded lease regarding the premises. The court concluded Levy was entitled to possession of the premises noting evidence showed she had no knowledge of Pedersen’s tenancy, and was not bound by the rule of law that possession of property by a tenant was notice of the nature and extent of the possessor’s interests. It stated as the six year lease was not recorded it was void as to good faith purchasers. Also, the court found the unrecorded lease executed before the filing of a notice of pendency was defeated by the foreclosure judgment and sale. The lease was also voidable under Debtor and Creditor Law (DCL) §§273 and 276 as Pedersen received a “sweetheart” deal from Paragallo, whose house was to be foreclosed on when the lease was given and he faced jail time.
