Court rules short-term rentals violate deed restrictions.
PECK’s LAKE – In November 2023, the New York State Supreme Court, Fourth Department, issued a ruling, titled Stone v. Peck, declaring that short-term rentals violate the prohibitions on commercial and business use of Peck’s Lake properties. The Court also ruled that short-term renters may not access the waters of Peck’s Lake. In August 2024 the ruling became final as the plaintiffs abandoned their appeal.
The court ruled that our deeds, which prohibit properties being used for business or commercial purposes, also “prohibits the short-term rental of property,” and, furthermore, that the restrictions on granting access to the lake to the general public “prohibits…permitting renters access to the waters of Peck Lake.”
Even if the Plaintiffs and their renters are using the property for residential purposes, and even if the Plaintiffs themselves are physically at the property a portion of the year, the commercialization of property in any way, by renting it out and advertising it on AirBnb or VRBO is prohibited.
Judge Rebecca Slezak, 4th Department
Anticipating questions as to the scope of the restrictions and the court’s rulings, the Judge noted that the restriction on lake access doesn’t apply to “invitees” — for example your family, friends, invited guests — only to the “general public,” who have no connection to the owners or the lake community.
It is the position of the PLPA, and our attorneys, that the ruling also applies to those who offer and/or use their property for “house swapping.” House Swapping, notes our attorneys, “violates Restricted Use No. 8” [of our deed restrictions]. These individuals are “not party to any deed, easement, or license to use the land or the lake waters.” Rather, they are members of the general public without permission to access the Lake.
House Swapping also violates Restricted Use No. 9 because it does not constitute a residential use of the Property, but rather, a commercial one. House Swapping is not residential because the third parties using your Property during the swap are using the Property in a short-term, transient manner — which is expressly prohibited by the Court’s ruling in Stone v. Peck. Furthermore, according to our attorneys, “House Swapping is commercial; it entails a bargained-
for exchange through which you obtain the benefit of temporarily living in a third-party’s residence.”
If you’d like to read the decision yourself, a copy of the decision and order can be accessed by clicking the download button below.
As a 20-year licensed NYS real estate broker who moved to Peck’s Lake 3 years ago, BECAUSE of the deed restrictions placed upon this spectacular Adirondack location, I am thrilled to read the Judge’s ruling, preserving the residential aspects and quiet-enjoyment qualities of life here.
BRAVA, Honorable Judge Slezak for a job well-done.
Thank you, PLPA for standing firm on principal, ethics and the law.
Sincerely,
Alexander Miller
Thanks Alex! For both your comments and for being our first ever PLPA commenter on a Post. I just enabled this function — hopefully people will find it fun!
Jim