Brooklyn tenants faced a $120,000 claim after renting from a fake owner; court later dismissed it after a sale

NewsWorld NewsUS NewsBrooklyn tenants rented an apartment from someone falsely claiming to own it, then faced a $120,000 judgment sought by the former landlord; after the building was sold again, a New York court dismissed that claim Brooklyn tenants rented an apartment from someone falsely claiming to own it, then faced a $120,000 judgment sought by the former landlord; after the building was sold again, a New York court dismissed that claim Renting an apartment from someone who falsely claims to own a property can lead to unexpected legal problems, even for tenants who believe they have a valid lease.

In Brooklyn, Deborah and Demetris Jones found themselves facing a $120,000 claim after renting an apartment from a woman who had fraudulently represented herself as its owner. The dispute continued even after the building changed hands, but a New York court has now dismissed the claim, finding that the former property owner no longer had the right to pursue it after selling the building and transferring its legal rights.In a decision issued on November 5, 2026, and dated November 6, 2026, the New York Supreme Court in Westchester County ruled in favour of the tenants in 131 Vernon Elite, LLC v.

Jones. The judgment, available on Justia, examined whether a former landlord could enforce an earlier agreement against tenants after selling the property and assigning its rights in a separate landlord-tenant proceeding to the new owner.

The court concluded that the former owner could no longer enforce the agreement under these circumstances.How the tenants became involved in the ownership dispute Deborah and Demetris Jones moved into Apartment 3 at 131 Vernon Avenue in Brooklyn on February 15, 2018.

They had signed a lease with Sepideh Homayoonfar, who falsely presented herself as the property's owner.The ownership dispute was later addressed in a separate court proceeding. A February 28, 2023, decision declared a fraudulent deed that purported to transfer ownership to Homayoonfar's deceased husband invalid.

This restored ownership to Shaul Amzalag, who subsequently transferred the property to 131 Vernon Elite LLC on March 29, 2023.Vernon Elite began legal proceedings against residents of the building, including the Joneses, by commencing a holdover proceeding on April 22, 2023.

On September 1, 2023, it filed a separate lawsuit seeking $163,000 for use and occupancy from September 1, 2017. The claim included periods before the Joneses had moved in and before Vernon Elite became the property's record owner.The agreement that led to a $120,000 claim In August 2026, the Joneses, through new legal counsel, asked the court to vacate the judgment.

After hearing oral arguments on August 31, the court set it aside and held an inquest on September 17, hearing testimony from a member of Vernon Elite and Demetris Jones. The central question was whether Vernon Elite still had the legal right to enforce the original agreement after selling the property and transferring its rights to Gelbstein.The court explained that ownership of property includes several rights, such as the right to possess it, control it and receive it back when someone occupying it leaves.

When Vernon Elite sold the building, it transferred its ownership rights to Gelbstein. This meant that Vernon Elite no longer had the right to demand the apartment keys or take possession of the property when the Joneses were supposed to leave.

The court also noted that the company had separately transferred its rights in the landlord-tenant proceeding to the new owner.Gelbstein subsequently negotiated a fresh agreement with the tenants, allowing them to remain for additional time in exchange for occupancy payments.

The court found that this new agreement replaced the earlier landlord-tenant arrangement between Vernon Elite and the Joneses. It also rejected the idea that the former owner could continue demanding money based on an agreement connected to possession of a property it no longer owned or controlled.What the ruling means You use AI every day.

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