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Change of Ownership effect on Rental Arrears.

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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Change of Ownership effect on Rental Arrears.

Postby truth only » Fri Nov 10, 2017 6:06 pm

I live in a rent stabilized building. It has recently been sold to a new owner, who also brought in a new management company.

Can the new owner collect on the rental arrears owed to the old owner? Is there any case law on this?

On a previous non-payment proceeding with the old owner (management company) they failed to produce an original lease, but the judge asked me if I wanted to remain in occupancy and therefore allowed them to proceed without one.

Thank you
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Re: Change of Ownership effect on Rental Arrears.

Postby TenantNet » Fri Nov 10, 2017 6:26 pm

There are no rent stabilized building, only rent stabilized apartments.

It can get complicated, but yes, a new owner can seek all outstanding rent. In a court proceeding, it would be subject to any defenses or counterclaims, and claims of incorrect rent. The statute of limitations for seeking back rent is 6 years. I would scrutinize any rent demand or rent bills very carefully to make sure they have the correct rent for the correct months. In many instance, the records are sloppy.

We can't say if the outcome of a prior case would impact current outstanding rent. In general in a housing court proceeding, the owner must plead the status of an apartment and that the respondent is indeed a tenant. That is often done with a lease, DHCR registrations and so on. I do not know if their failure to provide a lease should have impacted your right to continued occupancy, but it sound pretty fishy.

Even so, I don't know if there's much to be done now about the old case.

In a new case, without a lease, that might be factor. If the new owner takes you to court, I would consult with a tenant attorney and show him/her all the documents and details.
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