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the basics

Why Should You Read This?
Are You Being Overcharged?
How Much Is Your Case Worth?
Where Do You File Your Claim?
Will the Landlord Hire A Lawyer?
The Top Six Defenses Your Landlord Will Use
What Is the Statute of Limitations?
What If Your Building Changes Ownership?
How Do You Get Your Money If Your Win?

 

<<<<<The Top Six Defenses Your Landlord Will Use

the basics

What Is the Statute of Limitations in a Rent Overcharge Case?

Of all the weapons that a landlord's attorney can use to defeat a rent overcharge case, none is more effective than the statute of limitations, as strengthened by the Rent Regulation Reform Act of 1997.

The statute of limitations on a rent overcharge case is four years. But, as in almost everything regarding rent overcharge cases, a supposedly simple rule quickly becomes very complicated. Tons of trees have been felled to make the paper for lawyers to litigate the meaning of the four-year rule.

Logic would dictate that if the landlord overcharges the tenant every month for ten years, then the tenant should be able to claim the last four years of overcharges, right? Wrong. The Rent Regulation Reform Act of 1997 limited "examination of the rental history of the housing accommodation prior to the four-year period preceding the filing of a complaint" (see L 1997, ch 116, § 33). This act covers all rent overcharge cases, including fair market rent appeals. Gilman v. Division of Housing and Community Renewal, 2002 NY Int. 148 (N.Y.) [November 21, 2002]. If a landlord successfully overcharges a tenant for four years, then he gets to overcharge the tenant permanently.

While this may seem unfair, there are important reasons behind the four-year rule. The rule is meant to protect landlords from the burden of preserving rent records for thousands of apartments for an indefinite period of time. Perhaps it would be difficult for people to buy and sell real estate if an owner was liable for overcharges that may have begun ten or twenty years ago. Meanwhile, tenants point out that this law confers immunity on fraudulent landlords who succeed in hiding their overcharges from their tenants for four years.

But there are exceptions! There are too many factors to mention here. Needless to say, you have to have your rent history reviewed by an experienced attorney before deciding that your case is precluded by the four-year rule.

If you draw anything from this discussion of the four-year rule, it is that time is of the essence in seeking advice from an attorney. Once tenants realize that they are being overcharged, they may have a few months, or even a few days before their four years run out. Get that rent history from DHCR and take it to an experienced attorney without delay.

What If Your Building Changes Ownership?>>>>>

 

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De Castro Law Firm
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