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
On October 30, 2023, Vernon Elite reached a settlement agreement with the tenants. Under the arrangement, the Joneses agreed to vacate their apartment and return the keys by February 18, 2024.The agreement also stated that if the tenants complied with the terms of a separate landlord-tenant settlement, the company would waive outstanding arrears and discontinue its claim against them. However, if they breached the agreement, Vernon Elite could seek a judgment. Before the agreed move-out date, another major change occurred. On February 6, 2024, Vernon Elite sold the building to Abraham Gelbstein and transferred its rights in the landlord-tenant proceeding to him.The Joneses did not leave by February 18. However, on March 29, they reached a new court-approved agreement with Gelbstein, who had replaced Vernon Elite in the landlord-tenant case. Under the new arrangement, the tenants could remain until May 31, 2024, in exchange for two payments of $2,000 for their continued occupancy. The Joneses made both payments and vacated the apartment by the agreed date. Despite the sale and transfer of its legal rights, Vernon Elite continued pursuing its earlier claim. It sought a judgment of $120,000, along with interest and legal costs, based on the previous settlement. A judgment was signed on September 23, 2024.
Why the New York court dismissed the 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
The court noted that Vernon Elite could potentially have protected its financial interests through an arrangement with the buyer when selling the building. However, no such protection was established in the case.It also observed that Vernon Elite had benefited from the original agreement because it was able to sell the property before the tenants’ departure date without an escrow being held or credits being given to the buyer because of their continued occupancy. The judgment and order, dated November 6, 2026, dismissed the case, with the court concluding that Vernon Elite no longer had the right to enforce the agreement against the Joneses.The decision highlights how selling a property and transferring associated legal rights can affect an ongoing landlord-tenant dispute. It also shows why the terms of a property sale and the handling of existing tenant agreements can become important when ownership changes during legal proceedings.
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