Purchased Duplex, Never Received Security Deposit

[Tom Sylvester]

I purchased a duplex two months ago in NY. We received a security deposit for the downstairs tenants, but nothing for the upstairs tenants. The people selling the property to us said that they never recieved one from the former owner when they purchased the property.

We have come to find out that the tenants gave the original owner (the person who sold it to the people wh purchased it from) and has a signed receipt from them of this.

From looking on this website, http://www.oag.state.ny.us/realestate/guide_intro.html#6 , I know that the security deposit was supposed to be transfered to me, regardless of whether the previous owners received it when they purchased the property.

" If the building is sold, the landlord must transfer all security deposits to the new owner within five days, or return the security deposits to the tenants. Landlords must notify the tenants, by registered or certified mail, of the name and address of the new owner. Purchasers of rent stabilized buildings are directly responsible to tenants for the return of security deposits and any interest. This responsibility exists whether or not the new owner received the security deposits from the former landlord."

I am planning on talking with the previous owners and asking for the security deposit first, and if they do not comply then file a claim in small claims court. MY question is, does anyone know the exact law that requires them to transfer the security deposit when they sell the property, even if they did not receive it when the purchased it? I would like to be able to point them to it.

Thanks.