Tenant Can't Challenge Broker's Fee for Deregulated Apartment

Tenant complained of a rent overcharge. The DRA ruled for tenant, finding a willful rent overcharge, which included an illegal broker's fee of $2,100. Landlord appealed, claiming that when tenant moved in, the monthly rent for the apartment was more than $2,000. So the apartment was deregulated, which meant that there was no rent overcharge, and landlord could charge the broker's fee. Tenant argued that the broker's fee was illegal in any event. The DHCR ruled for landlord. The apartment was vacant on or after April 1, 1994, when the high-rent deregulation law took effect and remained vacant until October 1995, when tenant moved in at a monthly rent of $2,100. Tenant didn't question the $2,100 rent in his overcharge complaint. Since the apartment was deregulated, the DHCR had no authority to decide tenant's complaint concerning the illegal broker's fee.

Mann Realty: DHCR Adm. Rev. Dckt. No. LD510042RO (12/5/97) [2-page document]