Which Landlord Is Responsible for Overcharge After Judicial Sale of Building?

LVT Number: #28423

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $12,000, including interest and minus a prior partial refund. Landlord appealed and lost. Landlord claimed that it had bought the building after a judicial sale from the prior landlord, so it wasn't responsible for the rent overcharge. But the DRA's order didn't make any finding as to who was responsible for refunding the overcharge.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $12,000, including interest and minus a prior partial refund. Landlord appealed and lost. Landlord claimed that it had bought the building after a judicial sale from the prior landlord, so it wasn't responsible for the rent overcharge. But the DRA's order didn't make any finding as to who was responsible for refunding the overcharge. The DRA stated that landlord and tenants were advised to pursue in court the issue of liability of the current landlord for rent overcharges found during the period that prior owner held the building. The DRA's order otherwise simply found there was an overcharge for the period after the last rent payment date addressed in a prior overcharge determination for the apartment. Also, in this case, there was no proof that the overcharges at issue, although apparently occurring after a judicial sale, were the result of overcharges collected prior to that sale. The prior DHCR rent overcharge order also gave all landlords full notice of the legal regulated rent for the apartment. 

Fordham Fulton Realty Corp.: DHCR Adm. Rev. Docket No. EW610071RO (3/26/18) [6-pg. doc.]

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