What happens to the security deposit if a New York landlord sells the property?

New York statutes typically give the landlord two options: transfer the deposit to the new owner with written notice to the tenant identifying the new holder, or return the deposit directly to the tenant minus any documented deductions. The landlord cannot simply pocket the deposit at sale; the deposit belongs to the tenant subject only to legitimate deductions at end of tenancy. The new owner takes over the obligation to return the deposit at move-out under the same statute (GOL 7-108(1-a)(e)), regardless of whether the prior owner forwarded it. Tenants should request a written confirmation from the new owner that the deposit has been received, and keep it with the lease records. If neither owner can produce the deposit at move-out, the tenant has a claim against both. Failure to provide the itemized statement within 14 days forfeits the landlord's right to retain any part of the deposit.

Source: GOL 7-108(1-a)(e)