NY Gen Oblig L § 7-108 (2021)
2021 New York Laws GOB - General Obligations Article 7 - Obligations Relating to Property Received as Security Title 1 - Money Deposited as Security to Be Held in Trust in Certain Cases 7-108 - Deposits Made by Tenants of Non-Rent Stabilized Dwelling Units.

§ 7-108.  Deposits  made  by  tenants  of non-rent stabilized dwelling units.  1. This section shall apply to all dwelling units in residential premises, unless such dwelling  unit  is  specifically  referred  to  in section 7-107 of this title.   1-a.   Except   in  dwelling  units  subject  to  the  city  rent  and rehabilitation law or the emergency housing rent control law, continuing care retirement communities licensed pursuant to  article  forty-six  or forty-six-A of the public health law, assisted living providers licensed pursuant  to  article  forty-six-B  of the public health law, adult care facilities licensed pursuant to article seven  of  the  social  services law, senior residential communities that have submitted an offering plan to  the  attorney  general,  or  not-for-profit  independent  retirement communities  that  offer  personal  emergency  response,   housekeeping, transportation and meals to their residents:  (a)  No deposit or advance shall exceed the amount of one month's rent unless the deposit or advance is for a seasonal  use  dwelling  unit  as provided for in subdivisions four and five of this section.  (b) The entire amount of the deposit or advance shall be refundable to the  tenant  upon  the  tenant's  vacating of the premises except for an amount lawfully retained for the reasonable and itemized  costs  due  to non-payment  of rent, damage caused by the tenant beyond normal wear and tear, non-payment of utility charges payable directly  to  the  landlord under  the  terms of the lease or tenancy, and moving and storage of the tenant's belongings. The landlord may  not  retain  any  amount  of  the deposit  for  costs  relating  to ordinary wear and tear of occupancy or damage caused by a prior tenant.  (c)  After  initial  lease  signing  but  before  the  tenant   begins occupancy,  the  landlord  shall  offer  the  tenant  the opportunity to inspect the premises with  the  landlord  or  the  landlord's  agent  to determine  the  condition  of  the property. If the tenant requests such inspection, the parties shall execute a  written  agreement  before  the tenant  begins  occupancy  of the unit attesting to the condition of the property and specifically noting any existing defects or  damages.  Upon the  tenant's  vacating of the premises, the landlord may not retain any amount of the deposit or advance due to any condition, defect, or damage noted in such agreement. The agreement shall be admissible  as  evidence of  the  condition of the premises at the beginning of occupancy only in proceedings related to the return or amount of the security deposit.  (d) Within a reasonable time  after  notification  of  either  party's intention  to  terminate  the  tenancy, unless the tenant terminates the tenancy with less than two weeks' notice, the landlord shall notify  the tenant  in writing of the tenant's right to request an inspection before vacating the premises and of the tenant's right to  be  present  at  the inspection.  If  the  tenant requests such an inspection, the inspection shall be made no earlier than two weeks  and  no  later  than  one  week before  the  end  of  the  tenancy.  The landlord shall provide at least forty-eight hours written notice of the date and time of the inspection. After the inspection, the landlord shall  provide  the  tenant  with  an itemized  statement  specifying repairs or cleaning that are proposed to be the basis of any deductions from the  tenant's  deposit.  The  tenant shall  have the opportunity to cure any such condition before the end of the tenancy. Any statement produced pursuant  to  this  paragraph  shall only be admissible in proceedings related to the return or amount of the security deposit.  (e)  Within  fourteen  days after the tenant has vacated the premises, the landlord  shall  provide  the  tenant  with  an  itemized  statement indicating the basis for the amount of the deposit retained, if any, and shall  return  any  remaining portion of the deposit to the tenant. If a  landlord fails to provide the tenant  with  the  statement  and  deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit.  (f)  In any action or proceeding disputing the amount of any amount of the deposit retained, the landlord shall bear the burden of proof as  to the reasonableness of the amount retained.  (g)  Any  person who violates the provisions of this subdivision shall be liable for actual damages, provided a person found to have  willfully violated  this subdivision shall be liable for punitive damages of up to twice the amount of the deposit or advance.   2. (a) In circumstances where any sum of money or any other  thing  of value  deposited as security for the full performance by a tenant of the terms of his lease is  not  turned  over  to  a  successor  in  interest pursuant  to  section  7-105 of this chapter, the grantee or assignee of the leased premises shall also be liable to such tenant, upon conveyance of such leased premises, for the repayment of any such security deposit, plus accrued interest, as to which such grantee or assignee  has  actual knowledge.  (b)  For purposes of this section, a grantee or assignee of the leased premises shall be deemed  to  have  actual  knowledge  of  any  security deposit  which  is  (i)  deposited  at  any  time  during the six months immediately prior to closing or other transfer of title in  any  banking organization  pursuant  to  subdivision  two-a  of section 7-103 of this chapter, or (ii) acknowledged in any lease in  effect  at  the  time  of closing  or  other  transfer of title, or (iii) supported by documentary evidence provided by the tenant or lessee as set forth in paragraph  (c) of this subdivision.  (c)  With  respect to any leased premises for which there is no record of security deposit pursuant to subparagraph (i) or  (ii)  of  paragraph (b)  of this subdivision, the grantee or assignee of the leased premises shall be obligated to notify the tenant thereof in writing no later than thirty days following the closing or other transfer of title to the fact that there is no record of a security deposit for said  leased  premises and  that  unless  the  tenant within thirty days after receiving notice provides him or it with documentary  evidence  of  deposit,  the  tenant shall  have  no  further  recourse  against  him or it for said security deposit. For purposes of this subdivision, "documentary evidence"  shall be limited to any cancelled check drawn to the order of, a receipt from, or  a lease signed by any predecessor in interest, if such predecessor's interest in the leased premises existed on or after the  effective  date of  this  section. Except as otherwise provided by subparagraphs (i) and (ii) of paragraph (b) of this subdivision the grantee or assignee of the leased premises shall not  be  charged  with  actual  knowledge  of  the security  deposit where the tenant fails within the thirty-day period to provide said documentary evidence. Where the grantee or assignee of  the leased  premises  fails  to  notify  the  tenant  as  specified  in this paragraph within thirty days following the closing or other transfer  of title,  the  tenant shall be entitled to produce documentary evidence at any time.  (d) The grantee or assignee of the  leased  premises  shall  have  the right to demand that the grantor or assignor thereof establish an escrow account  equal  to  one  month's  rent for any leased premises for which there is no record of a security deposit pursuant to  paragraph  (b)  of this  subdivision  to  be  used  for the purpose of holding harmless the grantee or assignee in any case where,  at  a  date  subsequent  to  the closing  or other transfer of title, the tenant gives notice pursuant to paragraph (c) of this subdivision.  (e) 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  waiving  or modifying  his  rights  as set forth in this section shall be absolutely void.   4. A dwelling unit shall qualify as a seasonal use dwelling  unit  for the  purpose of paragraph (a) of subdivision one-a of this section if it meets all of the following conditions:  (a) The lease expressly  provides  that:  (i)  the  dwelling  unit  is registered  as  a  seasonal  use  dwelling unit, indicating the local or county government agency with which it is registered; (ii) the occupancy of the tenant is only for seasonal use not to exceed one hundred  twenty days  or  a  shorter  period  provided  for in the lease; and (iii) such tenant has a primary residence to return to, the  address  of  which  is expressly provided in the lease.  (b)  Such  dwelling  unit  is  registered  with  the appropriate local government, county, or state registry as  a  seasonal  use  dwelling  as provided for in subdivision five of this section.  (c)  Such  dwelling unit is not rented as a seasonal use dwelling unit for more than one hundred twenty days during each calendar year.   5. In order for a dwelling unit to qualify as a seasonal use  dwelling unit  for  the  purpose  of  paragraph  (a) of subdivision one-a of this section,  the  local   government   with   jurisdiction   for   building administration over such unit, the county in which such unit is located, or  the  state  shall have adopted a seasonal use dwelling unit registry and such unit shall be registered by filing a copy of the  seasonal  use lease  and  such additional information as the local government, county, or state agency that administers such registry may require.  Such  local government,  county,  or  state  agency  shall  revoke  the seasonal use dwelling unit registration of any dwelling unit that does not adhere  to the conditions provided for in subdivision four of this section.