One of the main causes of delay in sale and refinance closings on multiple dwellings in New York is the failure of the purchaser or Landlord to obtain a Rent Registration Printout in a timely manner. Prior to scheduling a closing, the lender must review the DHCR Printout and the Landlord (or his/her attorney) must respond to any questions the lender may have as to Overcharge Liability. Most, lenders will not schedule a closing until they are satisfied that the rents are legal and there is no Overcharge Liability.
When there is a discrepancy in the legal rent (from the Printout) and the rent amount claimed in the mortgage application, or a large increase in rent in a short period of time, the lender usually requires a satisfactory explanation of the reason for the discrepancy. An Opinion Letter from DHCRexpert.com can provide the answers that the lender is looking for.
DHCRexpert.com reviews Rent Registration Printouts, leases, rent histories, vacancies, major capital improvements and other factors, then calculates the maximum legal rent using the Rent Guidelines Board Increase Orders. We prepare a Rent Calculation form for each apartment in the building and then assess the amount of Overcharge Liability for the entire building. An important factor in this calculation is the accuracy of the Landlord's record keeping and the defensibility of a potential Overcharge Complaint.
We then provide an Opinion Letter for the seller, purchaser or lender, setting forth the estimated Overcharge Liability, based on the above factors. There is no guarantee that the Opinion Letter will alleviate all Overcharge Liability, however, we always put the emphasis on the justification and defensibility of the highest possible legal rent. When your closing is in jeopardy, an Opinion Letter from DHCRexpert.com can make the difference between no deal and a successful deal.
Click here to Order an Opinion Letter.