Landlord Must Refund Illegal Broker's Fee Collected by Prior Landlord

Tenant complained of a rent overcharge. Among other things, tenant claimed prior landlord charged an illegal broker's fee of $1,000. The DRA ruled for tenant and ordered landlord to refund the fee plus triple damages for a total of $3,000. Landlord appealed, pointing out that it didn't collect the illegal broker's fee from tenant. The DHCR ruled against landlord. Landlord is responsible under the Rent Stabilization Code for refunding the broker's fee to tenant, since it was collected on or after April 1, 1984. Landlord could attempt to recover the overcharge amount from prior landlord.

535 W. 162nd St. Equities, Inc.: DHCR Adm. Rev. Dckt. No. IC 510013-RO (10/19/95) [4-page document]