[RPPTL Leasing Committee] Escalation Clauses Question

[Anne Q. Pollack]

Hello!

I wanted to follow up on a previous question to see if anyone had experience in the area of the legality of escalation clauses for leases dated prior to 1975? It's pretty obscure, and there is case law, but the current status of the law appears to still be unclear.

The courts seem to agree that rent escalations before 1988 for leases dated before 1975 would be permitted. A prohibition on them is considered an impairment of contract.

But for leases which extend beyond 1988 (and many 99-year leases do), the courts have not been as clear as to whether the escalation clauses can be enforced after 1988.

Has anyone had experience with this? Feel free to reach out to me privately.

Thank you,
Anne


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