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SPIEGEL IN THE TIMES: ON PREPAID RENT

GlennSpiegelheadshot.jpgOur partner, Glenn H. Spiegel was quoted in the Real Estate Section of Sunday's New York Times .

Here's the piece in its entirety:

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Seeking the Return Of Deposit Money

BY: JAY ROMANO

Q Four years ago we paid the first month's rent, the last month's rent, and a security deposit before moving into our apartment. Shortly before moving out, the building changed hands, and the new owner claims he has no record of our paying the last month's rent and that we have to get it from the previous owner. Is this correct? A "Under New York law, prepaid rent must be held in trust, much like a security deposit," said Glenn Spiegel, a Manhattan real estate lawyer. So a landlord who accepts prepaid rent must keep the funds in a separate account until the prepaid rent comes due under the lease. If the landlord sells the building, any money being held on behalf of a tenant should be transferred to the new landlord, since those funds belong to the tenant, not the first landlord. In this case, Mr. Spiegel said, the writer may have a claim against the new landlord, provided there was no damage to the apartment or other default under the lease.
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