New Landlord Needn't Return Security Deposit Paid to Prior Landlord

July 31, 2000

LVT Number: 14339

After she moved out, tenant sued new landlord in small claims court for return of a security deposit. Tenant had paid the security deposit to prior landlord in 1994. Right after tenant moved out, the building went into foreclosure and was transferred to new landlord. Tenant's security deposit was never transferred to new landlord. The court ruled against tenant. Tenant had no lease, and new landlord had no notice of payment of the security deposit.

After she moved out, tenant sued new landlord in small claims court for return of a security deposit. Tenant had paid the security deposit to prior landlord in 1994. Right after tenant moved out, the building went into foreclosure and was transferred to new landlord. Tenant's security deposit was never transferred to new landlord. The court ruled against tenant. Tenant had no lease, and new landlord had no notice of payment of the security deposit. And since new landlord bought the building in foreclosure, the law didn't require him to cover the security deposit when prior landlord didn't turn it over.

Tucker v. Hannon: NYLJ, 7/5/00, p. 36, col. 2 (Town Ct. Ossining; Shapiro, J)

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