How have the courts interpreted the provisions of section 233 of the Real Property Law when a landlord offered an illusory lease to tenants?

"New York", United States of America

The following excerpt is from Hankin v. Armstrong, 113 Misc.2d 24, 451 N.Y.S.2d 334 (N.Y. App. Term 1981):

We affirm the findings of the trial court that landlord did not comply with the provisions of section 233 of the Real Property Law when it offered tenants illusory leases to sign. Moreover, we find that the late charges were unreasonable and in the nature of a penalty and, therefore, were not enforceable (Truck Rent-A-Center v. Puritan Farms 2nd, Inc., 41 N.Y.2d 420, 423-424, 393 N.Y.S.2d 365, 361 N.E.2d 1015; 14 N.Y.Jur.Rev., Damages, 155 et seq.). Finally, the issues herein were identical and the court erred in not consolidating them prior to rendering its determination.

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