1. The Laws of New York
  2. Consolidated Laws
  3. General Obligations
  4. Article 7: Obligations Relating to Property Received As Security
  5. Title 1: Money Deposited As Security to Be Held In Trust In Certain Cases


Section 7-107 Liability of a grantee or assignee for deposits made by tenants upon conveyance of rent stabilized dwelling units

General Obligations (GOB)

Liability of a grantee or assignee for deposits made by tenants upon conveyance of rent stabilized dwelling units. 1. This section shall apply only to dwelling units subject to the New York city rent stabilization law of nineteen hundred sixty-nine or the emergency tenant protection act of nineteen seventy-four.

  2. (a) Any grantee or assignee of any dwelling unit referred to in subdivision one of this section shall be liable to a tenant for any sum of money or any other thing of value deposited as security for the full performance by such tenant of the terms of his lease, plus any accrued interest, if his or its predecessor in interest was liable for such funds. Such liability shall attach whether or not the successor in interest has, upon the conveyance of such dwelling unit, received the sum as deposited.

  (b) The liability of a receiver for payment of any security deposit plus accrued interest pursuant to this subdivision shall be limited to the amount of such deposit actually turned over to him or it pursuant to subdivision one of section 7-105 of this chapter and to the operating income in excess of expenses generated during his or its period of receivership.

  3. Any agreement by a lessee or tenant of a dwelling unit waiving or modifying his rights as set forth in this section shall be void.