1. Nyc real estate lawyers | Background of the Security Deposit Dispute
This matter arose from a residential lease dispute in New York City involving the non return of a high value security deposit after lease expiration.
NYC real estate lawyers assessed the factual timeline, the tenant’s compliance with notice requirements, and the landlord’s failure to meet repayment obligations under New York rental practices.
Lease termination and tenant compliance
The client had resided in a New York City apartment under a long term residential lease and paid a security deposit totaling $1.2 million.
Approximately four months before the lease expiration date, the tenant clearly notified the landlord of the intent not to renew the lease and requested timely return of the deposit upon move out.
The tenant vacated the premises on schedule, returned possession in good condition, and documented the handover through written communications and move out records.
2. Nyc real estate lawyers | Landlord Delay and Escalating Financial Risk
After initially acknowledging the obligation to return the deposit, the landlord failed to provide a specific repayment timeline.
As the lease end date approached, communication from the landlord became inconsistent and ultimately evasive, increasing the tenant’s financial exposure.
Unjustified withholding of the security deposit
Following the tenant’s full vacatur, the landlord asserted vague internal reasons for delaying payment without citing any lease based deductions or documented damages.
The tenant, relying on the deposit to satisfy refinancing and relocation obligations, faced potential loan default risks and additional interest costs.
At this stage, NYC real estate lawyers determined that voluntary resolution was unlikely and that formal legal action was necessary.
3. Nyc real estate lawyers | Legal Strategy and Litigation Approach
NYC real estate lawyers developed a litigation strategy focused on clarity of lease termination, proof of compliance, and financial urgency.
The goal was not only to obtain a favorable judgment but also to ensure enforceability and recovery.
Evidence organization and procedural positioning
Counsel compiled lease agreements, payment confirmations, written notice of non renewal, proof of vacatur, and correspondence demonstrating the landlord’s delay.
Financial documentation was introduced to establish the real world impact of the deposit withholding, reinforcing the urgency of judicial relief.
Property ownership records were reviewed to assess post judgment enforcement options and minimize collection risk.
4. Nyc real estate lawyers | Court Decision and Final Outcome
Based on the evidence presented, the court found that the lease had lawfully terminated and that the tenant satisfied all obligations required for deposit recovery.
The landlord’s failure to return the funds within a reasonable time was deemed unjustified.
Judgment ordering full repayment
The court issued a judgment ordering the landlord to return the full $1.2 million security deposit to the tenant.
The decision confirmed that a landlord may not condition repayment on speculative future leasing activity or internal administrative delays.
Through the guidance of NYC real estate lawyers, the client recovered the entire deposit without reduction.
20 Jan, 2026
