Cooperative Apartment Exempt After Closing

Facts: Landlord, an interim lessee in a building undergoing cooperative conversion, sublet apartment for one year in 1984. Landlord bought the apartment in May of that year. Landlord later sued subtenant to recover unpaid rent during 1984 and for use and occupancy during a period in 1985 when subtenant held over. Subtenant claimed he was subject to rent stabilization and had been overcharged. The court ruled for landlord and tenant appealed. Court: Tenant loses. The apartment became exempt from rent stabilization when it was purchased as a cooperative in May 1984. At most, subtenant could claim that he remained rent-stabilized until the end of his sublease in December 1984. However, subtenant didn't raise the issue of the rent overcharge until sometime after landlord brought court action. So he was time-barred from raising any overcharge claim.

Immerblum v. Grefe: NYLJ, p. 26, col. 4 (1/14/97) (App. T. 1 Dept.; McCooe, JP, Freedman, Davis, JJ)