"[The defendant's] apparent belief that he is automatically entitled to retain security deposits{**60 Misc 3d at 849} unless the depositor asks for its return is as disturbing as it is astounding. As a trustee of the security deposits he receives, it is [the defendant's] duty 'to know the source of the funds and to return them as otherwise appropriate to their source at the end of the lease term.' The fact that a depositor may not ask for the return of a security deposit does not obviate his legal obligation to return it to the depositor when required to do so, or to provide an accounting of his expenditures to the depositor when he does not return the deposit." (Kamara, 2006 NY Slip Op 50172[U], *5 [citation omitted].)
In addition, General Obligations Law § 7-103 (3) states "[a]ny provision of such a contract or agreement [for the use or rental of real property] whereby a person who so deposits or advances money waives any provision of this section is absolutely void." The requirement that a tenant provide a landlord with written notice prior to the right to have a security deposit returned violates General Obligations Law § 7-103 (3) and the terms of and public policy behind General Obligations Law § 7-103 (1).
Because that portion of paragraph 1 of the lease violates both the terms of General Obligations Law § 7-103 (1) and (3) and the public policy behind General Obligations Law § 7-103 (1) and (3), I find that portion of [*7]the lease to be unconscionable and refuse to enforce it. (Real Property Law § 235-c [1].)
Decision