Nicholas A. Gravante, P. C. v. Gennaro Lombardi Corp.

The IAS Court properly interpreted and applied Rent Stabilization Code (9 NYCRR) § 2526.1 (f) (1), which provides that a purchaser at a judicial sale is exempt from liability for overcharges of previous owners if, inter alia, "no records suf*232ficient to establish the legal regulated rent were provided at a judicial sale”. In light of the court’s broad discretion in presiding over foreclosure proceedings (see, e.g., Notey v Darien Constr. Corp., 41 NY2d 1055), and since records establishing the legal rent are in the file of this action and available to any potential purchaser of the property, it…