Neptune City, NJ asked in Landlord - Tenant for New York

Q: What happens in a situation where a tenant had verbal agreement with landlord that utilities were included. Bldg sold.

New landlord, one yr in to ownership , suddenly stops paying utilities. Utility Co now demands back payment from tenant and is threatening turn off of services. What rights does tenant have?

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James L. Arrasmith
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  • Landlord Tenant Lawyer
  • Sacramento, CA

A: In situations where there was a verbal agreement with the previous landlord that utilities were included in the rent, and the building has since been sold to a new landlord who has stopped paying for these utilities, it's crucial to understand your rights and possible courses of action. Initially, verbal agreements regarding rental terms can be legally binding, though proving the specifics of such agreements can be challenging. The change in ownership does not automatically negate the terms agreed upon with the previous landlord, especially if those terms were a key part of your decision to rent the property.

If you find yourself facing demands for back payment from the utility company, along with threats of service termination, it's important to communicate the situation to the new landlord. Document all interactions and gather any evidence of the original agreement, such as emails, texts, or witness statements. This documentation can be vital in disputes. Meanwhile, contacting the utility company to explain the situation and seeking a temporary arrangement can prevent the immediate shut-off of services.

Lastly, consider seeking legal advice or assistance from a tenant's rights organization. They can provide guidance based on your local laws and regulations, which can vary significantly. In many places, tenants have the right to a habitable living environment, which includes access to essential utilities. Legal advisors or tenant advocacy groups can also assist in negotiating with both the landlord and the utility company, aiming to reach a resolution that respects your rights under the original rental agreement.

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