What If My Building Changes Ownership?

When title to a rent stabilized building changes hands, a tenant can collect the full overcharge from the new owner. 99 NYCRR § 2526.1(f)(2) (NYC RSC); Franklin Assoc. v. Klusman, NYLJ 1/7/92. 21:4 (First Dept.); Turner v. Spear, 134 Misc.2d 733, 512 N.Y.S.2d 335 (Civ. Ct. N.Y. County 1987); see also Coulston v. Singer, 86 Misc.2d 1001, 384 N.Y.S.2d 74 (N.Y. County 1976). This is true for overcharges found as a result of Fair Market Rent Appeals. DHCR’s former policy of apportioning overcharge liability between prior and subsequent owners was found to be "inconsistent and without rational basis." Polanco v. Higgins, 175 A.D.2d 729, 572 N.Y.S.2d 916 (First Dept. 1991); see also DHCR Policy Statement 93-1.

Steven De Castro, Esq., represents tenants in rent overcharge cases. To find out how the statements made on this site may be applicable to your situation, call 212-964-5364.

Date: December 1, 2002. Steven De Castro © 2002, All Rights Reserved. The representations made are accurate to the best of the author's knowledge on the day of publication, but readers should note that laws and regulations constantly change and are subject to different interpretations. For legal advice applicable to your situation, see an attorney. This fact sheet expires one year after publication.