Buy-Out' Agreement Doesn't Settle Overcharge Complaint

Tenant complained of a rent overcharge. After filing the complaint, tenant moved out of her apartment pursuant to a buy-out agreement with landlord. The agreement stated that tenant preserved all her rights under the rent stabilization code. Landlord couldn't provide a complete rental history, so the DRA set the rent using its default procedure, which resulted in a rent overcharge finding. Landlord appealed, arguing that tenant gave up her right to any overcharge because the buy-out agreement released landlord from any claims or damages tenant might have against landlord. The DHCR ruled for tenant. The agreement specifically protected tenant from giving up her rights under the rent stabilization code while she lived in the apartment. Filing an overcharge complaint is one of those rights. So, the release clause didn't take away tenant's right to file the overcharge complaint.

Rush Associates: DHCR Adm. Rev. Dckt. No. BJ 430377-RO (5/27/94) [2-page document]