S T A T E O F N E W Y O R K
________________________________________________________________________
421--A
2025-2026 Regular Sessions
I N S E N A T E
(PREFILED)
January 8, 2025
___________
Introduced by Sen. LIU -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary -- recommitted
to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01676-03-6
S. 421--A 2
2. IN ANY LEASE OR RENTAL AGREEMENT, EXCLUDING ANY REAL ESTATE
PURCHASE CONTRACT DEFINED IN PARAGRAPHS (A), (C) AND (D) OF SUBDIVISION
FOUR OF SECTION FOUR HUNDRED SIXTY-ONE OF THIS CHAPTER, COVERING PREM-
ISES NOT 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 LANDLORD'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, 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 PREMISES. NOTHING IN THIS
SECTION WILL PRECLUDE THE LANDLORD FROM SEEKING RECOVERY OF DAMAGES FOR
THAT PORTION OF THE RENT NOT RECOVERED THROUGH ANY SUCCESSFUL EFFORT TO
RELEASE THE PROPERTY UNDER THE DUTY TO MITIGATE IN THIS SECTION. THE
BURDEN OF PROOF SHALL BE ON THE PARTY SEEKING TO RECOVERY 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.