Ask Me Help Desk - Security Deposit refund

New York State... My landlord has sold the property I am renting and has given me 30 days notice (no lease). I asked to use my security deposit as my last month's rent. He told me that my deposit will be transferred to the new owner and the lawyers will return it at the time of their closing.

Now since I have nothing to do with their real estate transaction why do I have to wait and why is the new owner responsible for an agreement I entered into with the current owner. What statute is available to me on this... Please help.

First no you can't use a security deposit for last months rent that is not what it is for, it is a deposit for damage you do and is not given until you move out.

If you move out and the current owner still owns the property, he will owe your deposit back, but if the new owner already owns the property by the time you move out, the correct procedure is to transfer the deposit to the new owner for him to give you, since if you damge the property after he owns it, it will be him that has the grievance against you.

While a landlord can withhold security for unpaid rent, the tenant can't offer it since that leaves the landlord exposed if there is any damage.

I'm not sure what agreement you refer to that you entered in with the current owner, but generally, when a rental property is sold voluntarily, the new owner assumes any lease arrangements. Therefore, any security deposits are transferred to the new owner.

Rereading, it sounds like the current owner is asking you to vacate BEFORE the sale is closed. If that's the case, then return of the security is his responsibility and you should not have to wait until closing. On the other hand, reading between the lines, I wonder if he has kept the deposits separate and is just figuring on paying them out out of the proceeds of the sale.

Quote:

Originally Posted by majbuc1

New York State....My landlord has sold the property I am renting and has given me 30 days notice (no lease). I asked to use my security deposit as my last month's rent. he told me that my deposit will be transferred to the new owner and the lawyers will return it at the time of their closing.

Now since I have nothing to do with their real estate transaction why do I have to wait and why is the new owner responsibile for an agreement I entered into with the current owner. What statute is available to me on this... Please help.

If the property changes hands, the new landlord must fulfill the obligations of the previous landlord. The lease stays in affect until it ends. All security deposits being held by the previous owner will transfer to the new owner during the closing. (The Security Deposits show up as a line item on the closing statement) Within 30 days of the tenant leaving the property, the new owner will inspect the rental unit and will be responsible to return the security deposit to you, or tell you why the security deposit is not going to be returned.