Cooperatives & Condominiums

Intimate Relationship Does Preclude Contract About Co-Op Ownership

Anonymous v. Anonymous

NYLJ 2/27/04, p.18, col. 3

Supreme Ct., N.Y. Cty

(Edmead, J.)

In an action for partition of a Soho cooperative loft, and for a declaratory judgment that an agreement between the co-tenants was enforceable, defendant co-tenant sought to dismiss the action. The court granted plaintiff co-tenant's summary judgment motion establishing that the agreement between the parties was valid and enforceable.

In 1983, the two co-tenants, who were then involved in an intimate relationship, purchased the subject co-operative apartment. The stock transfer record book indicates that the parties purchased as “joint tenants with right of Survivorship.” At the time, the parties jointly borrowed $35,000 from Citibank to finance the purchase. Plaintiff co-tenant was a certified artist, and defendant co-tenant was a tax lawyer. At the time of the purchase, the parties entered into an agreement reciting that they had jointly contributed their time and resources to ward maintenance of a household, that defendant had contributed the majority of the funds needed for the apartment, and that plaintiff had contributed more of the time and talents necessary to renovate and maintain the loft. The agreement went on to provide that all monies paid by either party toward expenses should be deemed a gift to the other, that ownership should be deemed held “as tenants in common with the rights of survivorship”[sic], and that in the event of termination of the agreement, the parties would sever their joint interests, one-half to each. The parties separated in 1997, and defendant moved to part of the unit, while the building split the maintenance charges. In 1998, defendant served a letter terminating the agreement, and in 2002, defendant sent plaintiff another letter demanding that plaintiff vacate the premises, contending that the agreement was a nullity. Plaintiff co-tenant then brought this action for partition and declaratory relief.

In holding the agreement between the parties valid and enforceable, the court noted that in New York, cohabitation between parties with an intimate relationship does not disable the parties from making an agreement within the normal rules of contract law. Because the agreement between the parties recited consideration flowing from each party to the other, the court would not presume that the contract was based solely on love and affection. The court therefore held enforceable the parties' agreement to retain equal rights in the apartment until termination of the agreement.

Intimate Relationship Does Preclude Contract About Co-Op Ownership

Anonymous v. Anonymous

NYLJ 2/27/04, p.18, col. 3

Supreme Ct., N.Y. Cty

(Edmead, J.)

In an action for partition of a Soho cooperative loft, and for a declaratory judgment that an agreement between the co-tenants was enforceable, defendant co-tenant sought to dismiss the action. The court granted plaintiff co-tenant's summary judgment motion establishing that the agreement between the parties was valid and enforceable.

In 1983, the two co-tenants, who were then involved in an intimate relationship, purchased the subject co-operative apartment. The stock transfer record book indicates that the parties purchased as “joint tenants with right of Survivorship.” At the time, the parties jointly borrowed $35,000 from Citibank to finance the purchase. Plaintiff co-tenant was a certified artist, and defendant co-tenant was a tax lawyer. At the time of the purchase, the parties entered into an agreement reciting that they had jointly contributed their time and resources to ward maintenance of a household, that defendant had contributed the majority of the funds needed for the apartment, and that plaintiff had contributed more of the time and talents necessary to renovate and maintain the loft. The agreement went on to provide that all monies paid by either party toward expenses should be deemed a gift to the other, that ownership should be deemed held “as tenants in common with the rights of survivorship”[sic], and that in the event of termination of the agreement, the parties would sever their joint interests, one-half to each. The parties separated in 1997, and defendant moved to part of the unit, while the building split the maintenance charges. In 1998, defendant served a letter terminating the agreement, and in 2002, defendant sent plaintiff another letter demanding that plaintiff vacate the premises, contending that the agreement was a nullity. Plaintiff co-tenant then brought this action for partition and declaratory relief.

In holding the agreement between the parties valid and enforceable, the court noted that in New York, cohabitation between parties with an intimate relationship does not disable the parties from making an agreement within the normal rules of contract law. Because the agreement between the parties recited consideration flowing from each party to the other, the court would not presume that the contract was based solely on love and affection. The court therefore held enforceable the parties' agreement to retain equal rights in the apartment until termination of the agreement.