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Assembly Bill A2611A

2025-2026 Legislative Session

Requires landlords to mitigate damages when commercial tenants vacate premises in violation of the terms of the lease

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Bill Amendments

co-Sponsors

2025-A2611 - Details

See Senate Version of this Bill:
S421
Law Section:
Real Property Law
Laws Affected:
Amd §227-e, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: A8482, S7053
2021-2022: A6906, S1129
2023-2024: A2729, S2134

2025-A2611 - Summary

Requires landlords to mitigate damages when commercial tenants vacate premises in violation of the terms of the lease.

2025-A2611 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2611
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 21, 2025
                                ___________
 
 Introduced  by  M.  of A. OTIS, SEAWRIGHT, SIMON, STIRPE, SAYEGH -- read
   once and referred to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation  to  requiring  land-
   lords  to  mitigate damages when commercial tenants vacate premises in
   violation of the terms of the lease

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 227-e of the real property law, as added by section
 4  of  part  M  of chapter 36 of the laws of 2019, is amended to read as
 follows:
   § 227-e. Landlord duty to mitigate damages. In  any  lease  or  rental
 agreement,  excluding any real estate purchase contract defined in para-
 graphs (a), (c) and (d) of subdivision  four  of  section  four  hundred
 sixty-one  of  this  chapter,  [covering  premises occupied for dwelling
 purposes,] if a tenant vacates a premises in violation of the  terms  of
 the  lease, the landlord shall, in good faith and according to the land-
 lord's resources and abilities, take reasonable and customary actions to
 rent the premises at fair market value or at the rate agreed  to  during
 the  term  of the tenancy, whichever is lower. If the landlord rents the
 premises at fair market value or at the rate agreed to during  the  term
 of  the tenancy, the new tenant's lease shall, once in effect, terminate
 the previous tenant's lease and mitigate damages  otherwise  recoverable
 against  the previous tenant because of such tenant's vacating the prem-
 ises. The burden of proof shall be  on  the  party  seeking  to  recover
 damages.  Any  provision  in  a  lease that exempts a landlord's duty to
 mitigate damages under this section shall be void as contrary to  public
 policy.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01676-01-5

co-Sponsors

2025-A2611A (ACTIVE) - Details

See Senate Version of this Bill:
S421
Law Section:
Real Property Law
Laws Affected:
Amd §227-e, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: A8482, S7053
2021-2022: A6906, S1129
2023-2024: A2729, S2134

2025-A2611A (ACTIVE) - Summary

Requires landlords to mitigate damages when commercial tenants vacate premises in violation of the terms of the lease.

2025-A2611A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2611--A
                                                          Cal. No. 95
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 21, 2025
                                ___________
 
 Introduced by M. of A. OTIS, SEAWRIGHT, SIMON, STIRPE, SAYEGH, COLTON --
   read  once  and referred to the Committee on Judiciary -- ordered to a
   third reading, amended and ordered reprinted, retaining its  place  on
   the order of third reading

 AN  ACT  to  amend the real property law, in relation to requiring land-
   lords to mitigate damages when commercial tenants vacate  premises  in
   violation of the terms of the lease
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 227-e of the real property law, as added by section
 4 of part M of chapter 36 of the laws of 2019, is  amended  to  read  as
 follows:
   §  227-e. Landlord duty to mitigate damages. 1. In any lease or rental
 agreement, excluding any real estate purchase contract defined in  para-
 graphs  (a),  (c)  and  (d)  of subdivision four of section four hundred
 sixty-one of this  chapter,  covering  premises  occupied  for  dwelling
 purposes,  if  a  tenant vacates a premises in violation of the terms of
 the lease, the landlord shall, in good faith and according to the  land-
 lord's resources and abilities, take reasonable and customary actions to
 rent  the  premises at fair market value or at the rate agreed to during
 the term of the tenancy, whichever is lower. If the landlord  rents  the
 premises  at  fair market value or at the rate agreed to during the term
 of the tenancy, the new tenant's lease shall, once in effect,  terminate
 the  previous  tenant's lease and mitigate damages otherwise recoverable
 against the previous tenant because of such tenant's vacating the  prem-
 ises.  The  burden  of  proof  shall  be on the party seeking to recover
 damages. Any provision in a lease that  exempts  a  landlord's  duty  to
 mitigate  damages under this section shall be void as contrary to public
 policy.
   2. IN ANY  LEASE  OR  RENTAL  AGREEMENT,  EXCLUDING  ANY  REAL  ESTATE
 PURCHASE  CONTRACT DEFINED IN PARAGRAPHS (A), (C) AND (D) OF SUBDIVISION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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