N.Y. General Obligations Law § 7-108

GOL § 7-108: one month's security, itemized in fourteen days

General Obligations Law § 7-108 caps most New York security deposits at one month's rent and requires an itemized return within fourteen days.

Official text N.Y. General Obligations Law § 7-108 — New York

§ 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, or unless the deposit or advance is for an owner-occupied cooperative apartment as provided for in subdivision six 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 or county 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 or the county in which such unit is located 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 or county that administers such registry may require. Such local government or county 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.
  • 6. A dwelling unit shall qualify as an owner-occupied cooperative apartment for the purpose of paragraph (a) of subdivision one-a of this section if it meets all of the following conditions:
  • (a) the tenant is the dwelling unit owner, purchaser or shareholder of such a cooperative housing corporation;
  • (b) such tenant has or will have after purchase exclusive occupancy of such dwelling unit individually and with the permitted occupants pursuant to a proprietary lease or occupancy agreement and established and delimited rights under such lease or agreement; and
  • (c) such dwelling unit is not subject to the provisions of article two, article four, article five, or article eleven of the private housing finance law. For the purposes of this paragraph, "deposit or advance", as used in paragraph (a) of subdivision one-a of this section, shall not include any payments or advances that are part of the purchase price of the unit or shares.

Text as published in the 2026 snapshot of the code.

Source: Vaquill Open US Law, compiled from official state publishers (huggingface.co), reproduced under license CC BY 4.0.

Read this provision at the official source →

What it actually says

Four rules in this section decide most deposit arguments in New York. A deposit or advance may not exceed one month's rent, with narrow exceptions for registered seasonal-use units and owner-occupied co-op apartments. The whole deposit is refundable except for reasonable, itemized amounts for unpaid rent, damage beyond normal wear and tear, unpaid utility charges owed directly to the landlord, and moving and storage of the tenant's belongings - and the text says in terms that the landlord may not keep anything for ordinary wear and tear of occupancy, or for damage a prior tenant caused. Within fourteen days after the tenant has vacated, the landlord must give an itemized statement of what is being kept and return the rest. And if the landlord misses that fourteen-day deadline, the text is unusually blunt: the landlord "shall forfeit any right to retain any portion of the deposit".

Two procedural rights sit alongside them and are frequently unused. After the lease is signed but before the tenant moves in, the landlord must offer an inspection; if the tenant asks for it, the parties sign a written statement of the condition of the property noting existing defects, and the landlord may not later deduct for anything noted in it. Near the end of the tenancy - unless the tenant gave less than two weeks' notice - the landlord must tell the tenant in writing of the right to a move-out inspection, hold it between two weeks and one week before the end with 48 hours' written notice, provide an itemized list of proposed deductions, and give the tenant the chance to cure them before leaving.

Paragraph (f) settles who has to prove what: in any dispute about the amount retained, the burden of proof as to the reasonableness of the amount is on the landlord. Paragraph (g) sets the exposure - actual damages, and up to twice the deposit in punitive damages for a willful violation. Subdivision 2 handles the building that changes hands, making the new owner liable for a deposit it has actual knowledge of, and defining that knowledge by reference to bank deposits made in the six months before closing, acknowledgment in a lease in effect at closing, or documentary evidence from the tenant. Subdivision 3 makes any waiver of the section absolutely void.

When it applies

  • The landlord keeps the whole deposit for repainting and normal marks after a long tenancy.
  • Fourteen days pass after move-out with no itemized statement and no money.
  • A landlord asks for two or three months' rent as security before the tenant moves in.
  • Deductions are claimed for damage that was already there when the tenant arrived.
  • The building is sold and the new owner says the deposit was never handed over.
  • The tenant asks to be present at a move-out inspection and is refused.

What this section does not say

  • It does not cover rent-regulated units of the kind listed in § 7-107 - subdivision 1 excludes them from this section.
  • It is not a rule about the last month's rent. A deposit is security, and this section does not entitle a tenant to live out the deposit instead of paying the final month.
  • It does not define normal wear and tear. The phrase is used and not explained; whether a mark is wear or damage is a question of fact.
  • It does not set a deadline for the initial or move-out inspections to happen at all - they happen if the tenant requests them, on the timetable the section gives.
  • Forfeiture for missing the fourteen days concerns the right to retain the deposit. It does not extinguish rent the tenant actually owes, which the landlord may still pursue.

Worked examples

Invented situations, written to show how the wording bites. They are not real cases, not judgments and not precedent, and nothing here predicts what would happen in yours.

Illustrative example

Five weeks after moving out of an apartment they had lived in for four years, a tenant has had no list of deductions and no money back. The landlord says the whole deposit went on repainting.

How the wording applies

The landlord must provide an itemized statement of any amount retained within fourteen days after the tenant has vacated, and the text is blunt about missing it: the landlord shall forfeit any right to retain any portion of the deposit. Separately, nothing may be kept for ordinary wear and tear of occupancy. So this turns on the date of vacating and the fourteen days that ran from it, before anyone reaches the question of whether four years of marks are wear or damage.

How the parties settled it

The deposit is returned in full within a week, and both record in writing that any claim for rent actually unpaid is a separate matter to be dealt with on its own evidence.

Illustrative example

At the end of a lease a tenant is billed for a cracked worktop and a scuffed floor that were both there on the day they moved in. Nobody wrote anything down at the start of the tenancy.

How the wording applies

The section says the landlord may not retain any amount for damage caused by a prior tenant, and paragraph (f) puts the burden of proof as to the reasonableness of the amount retained squarely on the landlord. It also provides for an inspection before move-in, at the tenant's request, producing a signed statement of existing defects the landlord may not later deduct against. With no such statement in existence, it turns on what evidence either side has of the condition on day one.

How the parties settled it

They split the worktop between them, drop the floor entirely, and agree that the next tenancy begins with a signed condition statement and dated photographs held by both sides.

Illustrative example

A prospective tenant is asked for two months' rent as security plus a further month's rent in advance before the keys are handed over, and is told everyone in the building pays it.

How the wording applies

A deposit or advance may not exceed one month's rent, with narrow exceptions for registered seasonal-use units and owner-occupied co-op apartments, and subdivision 3 makes any waiver of the section absolutely void. What decides it is whether this unit falls into one of those narrow exceptions - not whether the tenant was willing to agree.

How the parties settled it

They settle on one month's security and one month's rent up front, with the landlord accepting a guarantor's letter in place of the extra month he had wanted.

The same problem elsewhere

The other legal systems in this collection answer the same everyday problem with their own provisions.

The comparison and these one-line summaries are in English.

The landlord kept the deposit: how five legal systems decide who was right

Read the full comparison →

Related sections

N.Y. General Obligations Law § 7-103 Money Held in Trust: N.Y. General Obligations Law § 7-103 N.Y. General Obligations Law § 7-105 Turn over deposit within five days:N.Y. Gen. Oblig.§ 7-105 N.Y. Real Property Law § 238-a Twenty Dollar Fee Cap: N.Y. Real Property Law § 238-a N.Y. Real Property Law § 234 RPL § 234: if the lease gives the landlord legal costs, the tenant gets them too N.Y. Real Property Law § 235-b Warranty of Habitability: N.Y. Real Property Law § 235-b

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This page reproduces the text of N.Y. General Obligations Law § 7-108 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in New York.

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