Landlord Bought ‘In Rem' Building
LVT Number: 10808
Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord had purchased the building from the City of New York at an ''in rem'' sale (i.e., a sale after the city took over a building because taxes weren't paid on it) and claimed it shouldn't have to refund any overcharges collected before the sale date. The DHCR ruled for landlord. Purchase of the ''in rem'' building fell within the definition of a purchase at a judicial sale. The rent stabilization code limited the liability of landlords in such cases to any overcharge they actually collected after the sale date.
Graham Court Owners Corp.: DHCR Adm. Rev. Dckt. No. BJ430192RO (3/7/96) [3-page document]