Rosa Rosenfeld, Respondent, v. Hyman Aaron et al., Appellants.
Real property — landlord and tenant — lease — deposit as security that tenant will conform to provisions — conveyance of property and security — covenant to return security passed to grantee subject to terms of lease — deposit may be retained until right to hold it as security has terminated — meaning of word “ re-enter ” in clause providing for re-entry by landlord upon violation by tenant of terms of lease — action to recover security premature where option to relet has been neither extinguished nor abandoned.
1. Where an owner of real property, who had received a deposit of money as security on a lease thereof, sold the premises subject to the lease and turned over the deposit to his grantee, who assumed the grantor’s obligation for the return of the security and agreed to indemnify him against any claim of the tenants therefor, the covenant to return passed to the grantee, subject to the terms of the lease and where the time has not arrived at which the grantor is bound to return the deposit, he and his grantee are not bound to return it merely because the premises have been conveyed. The deposit may be retained until the right to hold it as security has terminated. (Fallert Brewing Co. v. Blass, 119 App. Div. 53, distinguished.)