Reviewed September 7, 2026.
Work ordered by a tenant does not automatically support a lien against the landlord’s ownership interest. But a direct contract with the landlord is not required either. Review the lease and the landlord’s conduct under Lien Law § 3.
In Interior Building Services, Inc. v. Broadway 1384 LLC, 73 AD3d 529 (1st Dept 2010), liens against the building were discharged where the work served the tenant’s benefit, the contractors dealt with the tenant, and the landlord’s involvement did not establish the necessary consent on that record.
The later Court of Appeals clarification matters
In Ferrara v. Peaches Café LLC, 32 NY3d 348 (2018), the Court of Appeals confirmed that consent can be inferred from lease provisions requiring particular improvements and the owner’s affirmative involvement. Mere knowledge or passive acquiescence is insufficient, but direct dealings with the contractor are not indispensable. The court rejected contrary readings of earlier appellate decisions.
Obtain the lease, work letter, approvals, construction requirements and communications. Identify whether the lien can reach the fee interest, a qualifying leasehold interest, or neither. A tenant’s inability to pay does not expand lien rights, and the value of a leasehold lien requires practical assessment. Preserve separate contract claims and applicable filing deadlines.
Kushnick Pallaci PLLC assists clients throughout New York with tenant-improvement lien enforcement and defense. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
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