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If I understand correctly, you are subleasing from the primary tenant who leased to you and to another tenant for the downstairs?
Does your lease state that you only have use of the upper level of the dwelling?
Did you enter into a new verbal lease with the actual owner for the entire building?
What type of lease agreement does the downstairs tenant have?
Was your new lease agreement for the entire house contingent on you having use of the entire property?