Tenant Claims Prior Landlord Collected Overcharge

May 31, 1996

LVT Number: 10646

New landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge by prior landlord. Landlord argued that because it bought the building while it was in receivership, it was not responsible for prior landlord's overcharge. The court ruled for tenant. Generally, under the rent stabilization code, landlord is responsible for prior landlord's overcharge unless, as here, the building was purchased after foreclosure. But in this case landlord sought rent owed to prior landlord.

New landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge by prior landlord. Landlord argued that because it bought the building while it was in receivership, it was not responsible for prior landlord's overcharge. The court ruled for tenant. Generally, under the rent stabilization code, landlord is responsible for prior landlord's overcharge unless, as here, the building was purchased after foreclosure. But in this case landlord sought rent owed to prior landlord. Since new landlord sought rent due before it bought the building, it was responsible for any rent overcharge collected by prior landlord.

Hollis Gardens Realty Corp. v. Charles: NYLJ, p. 32, col. 2 (5/8/96) (Civ. Ct. Queens; George, J)

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