Building Bought at Judicial Sale

Tenant complained of a rent overcharge. The DRA ruled for tenant and found that there was a $25,000 overcharge. But the DRA also ruled that only prior landlord was responsible for refunding the overcharge. Current landlord bought the building at a judicial sale. Tenant appealed and lost. Under the Rent Stabilization Code, a landlord who buys a building with no records in foreclosure or through a judicial sale isn't responsible for prior rent overcharges unless there is a relationship between prior and current landlord. The fact that some of current landlord's partners assumed the building's mortgage before the judicial sale didn't mean that there was a relationship with prior landlord.

Cheffo: DHCR Adm. Rev. Dckt. No. QJ410045RT (1/28/03) [3-pg. doc.]