Relates to the duty to provide a written receipt

Title of bill

An act to amend the real property law, in relation to the duty to provide a written receipt

Purpose

The purpose of this bill is to adjust and clarify existing language regarding a landlord's duty to provide a tenant with a receipt for the payment of rent.

Summary of provisions

Section 1 of this bill amends section 235-e of the real property law by:

* specifying that duly authorized agents of a landlord that collect rent would also be responsible for providing a receipt, for such payment, to tenants;

* clarifying that if a tenant requests a receipt for rent paid by personal check, the request will remain valid for the remainder of the tenancy unless otherwise specified;

* requiring that if rent is directly given to a landlord or their authorized agent they must provide a tenant with a receipt immediately;

* requiring that if rent is paid indirectly, including but not limited to mailing or a drop-box, a landlord must provide the tenant a receipt of the payment within ten business days of receiving the payment; and

* requiring a landlord to inform a tenant in writing if such landlord fails to receive a tenant's rent payment within ten days of its due date. If the landlord does not inform the tenant this could be used as a defense by the tenant if the landlord is seeking to evict the tenant for nonpayment of rent.

Justification

This bill attempts to clarify and expand existing statute relating to receiving a written receipt for the payment of rent. The current statute is unclear on whether a tenant needs to request a receipt for rent paid by personal check every time they pay their rent. This bill would address this concern by having such a request remain in effect for the duration of the tenancy.

Additionally, there have been many instances where landlords have failed to provide tenants with receipts when a tenant does not directly give their rent payment to the landlord. This bill would require landlords that receive rent via mail, from a drop-box, or from another indirect means of conveyance to provide tenants with a receipt in a reasonable amount of time. The final provision of this bill would also require a landlord to notify a tenant if they do not receive their rent payment. This will prevent situations where a rent payment is lost in transit and the tenant does not know whether their landlord has received the rent payment. This bill could potentially reduce the number of eviction proceedings throughout the State by establishing a methodology for rent payments and acknowledgement of their receipt.

Legislative history

2014: S7766/A7406- REFERRED TO JUDICIARY/Third Reading Calendar Assembly 2013: A7406- Reported from housing and referred to Codes

Fiscal implications

None to the State

Effective date

Immediately.