Section 291-f Tenant Notice Letter
(NY)

Summary

This template for a Section 291-f tenant notice letter is used in New York when a commercial mortgage incorporates the provisions of N.Y. Real Prop. Law § 291-f to provide protections to a lender who has made a loan secured by real property in New York which contains leases. This template includes practical guidance and drafting notes. N.Y. Real Prop. Law § 291-f provides that a recorded mortgage that incorporates the provision of N.Y. Real Prop. Law § 291-f is effective to prohibit the right of borrower without lender's consent from cancelling, abridging, or otherwise modifying tenancies, subtenancies, leases, or subleases of the mortgaged real property in existence at the time of the mortgage, or from accepting prepayments of installments of rent to become due thereunder. For a template N.Y. Real Prop. Law § 291-f clause, see Section 291-f Mortgage Clause (NY). The restrictions imposed on borrower by N.Y. Real Prop. Law § 291-f become binding on a tenant or subtenant if written notice that the mortgage is subject to N.Y. Real Prop. Law § 291-f, and a copy of the text thereof, is provided to such tenant or subtenant. In such case, any such cancellation, abridgment, modification, or prepayment made by such tenant or subtenant, after such written notice, without the lender's consent is voidable by the lender, at its option. This template provides the applicable notice in accordance with N.Y. Real Prop. Law § 291-f to bind tenants and subtenants to these restrictions. Note that the requirements of N.Y. Real Prop. Law § 291-f do not apply (1) to any tenancy, subtenancy, lease, or sublease primarily for the residential purposes of the owner of the leasehold estate, or (2) to any tenancy, subtenancy, lease, or sublease having at the time of the mortgage an unexpired term of less than five years. This notice will be subject to lender's consent prior to being sent and may require modification as directed by lender. For further guidance on New York financing transactions see Commercial Real Estate Financing (NY) and Commercial Real Estate Financing Transactions (NY). For additional guidance on financing commercial real estate in New York, see Commercial Real Estate Acquisition Loan Resource Kit (NY). See also Junior Associate Real Estate Resource Kit (Acquisition Finance). For information on the purchase and sale of commercial real property in New York, see Purchasing and Selling Commercial Real Estate Resource Kit (NY). See also Junior Associate Real Estate Resource Kit (Commercial Purchase and Sale).