Building Bought at Judicial Sale

Tenant complained of a rent overcharge. The DRA ruled for tenant and found that there was a $21,000 overcharge, including interest. Landlord appealed. Landlord bought the building from a receiver while the tenant's complaint was pending and didn't get rent history documents at the judicial sale. Landlord submitted recently obtained rent history records with its PAR. The DHCR ruled for landlord in part. There was no explanation for the late submission of rent records that would excuse the delay and permit recalculation of the rent overcharge. But because landlord bought the building at a judicial sale and didn't receive rent history records at that time, it was responsible for refunding only that portion of the overcharge that it collected.

SRB Realty Corp.: DHCR Adm. Rev. Dckt. No. LE410155RO (10/22/03) [5-pg. doc.]