Buyer at Judicial Sale Liable for Deposits

February 1, 1999

LVT Number: 13008

Landlord asked the DHCR if it was responsible for tenant security deposits when it bought a building at a judicial sale. In an opinion letter, the DHCR stated that landlord was absolutely liable for security deposits if the prior landlord was liable at the time of the sale, whether or not the security deposits, including interest, were turned over at the sale. Under the General Obligations Law, tenants' rights to the return of their security deposits continue when there is a termination of a receivership or sale of a building.

Landlord asked the DHCR if it was responsible for tenant security deposits when it bought a building at a judicial sale. In an opinion letter, the DHCR stated that landlord was absolutely liable for security deposits if the prior landlord was liable at the time of the sale, whether or not the security deposits, including interest, were turned over at the sale. Under the General Obligations Law, tenants' rights to the return of their security deposits continue when there is a termination of a receivership or sale of a building.

DHCR Opin. Ltr. by Charles Goldstein (6/4/98) [2-pg. doc.]

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