Building Bought at Judicial Sale

June 30, 1998

LVT Number: 12466

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed landlord had collected a rent overcharge and produced a DHCR order directing the prior landlord to refund overcharges to tenant. The court ruled for tenant and dismissed the case. Landlord appealed. Landlord bought the building at a judicial sale after a foreclosure. Landlord received no records establishing tenant's legal regulated rent at the time of the judicial sale. So landlord was exempt from responsibility for any overcharge collected by prior landlord.

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed landlord had collected a rent overcharge and produced a DHCR order directing the prior landlord to refund overcharges to tenant. The court ruled for tenant and dismissed the case. Landlord appealed. Landlord bought the building at a judicial sale after a foreclosure. Landlord received no records establishing tenant's legal regulated rent at the time of the judicial sale. So landlord was exempt from responsibility for any overcharge collected by prior landlord. A 1993 stipulation between the building's receiver and various tenants, which was given to landlord at the judicial sale, didn't prove the legal rent. The case was sent back to the lower court for trial.

247 West 11th Street Realty Assocs. v. Houser: NYLJ, p. 25, col. 1 (6/16/98) (App. T. 1 Dept.; Parness, PJ, Freedman, Davis, JJ)

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