It is well settled that the transferee of real property takes the premises subject to the conditions as to tenancy that his or her predecessor has established if the transferee has notice of the existence of the leasehold. (Bank of NY v Hirschfeld, 37 NY2d 501 [1975]; 52 Riverside Realty Co. v Ebenhart, 119 AD2d 452 [1st Dept 1986].) Absent an affirmative assumption, however, a grantee is only liable for those covenants or agreements that run with the land. (Longley-Jones Associates, Inc v Ircon Realty Co, 67 NY2d 346 [1986]; Bank of NY v Hirschfeld, 37 NY2d 501, supra; Hudson Engineering Assocs, PC v Ames Dev Corp, 228 AD2d 477 [2d Dept 1996].)
On the issue of security deposits, General Obligations Law § 7-103 provides that money advanced by a tenant for such purpose "shall be held in trust by the person with whom such deposit or advance shall be made." (Glass v Janbach Properties, Inc, 73 AD2d 106 [2d Dept 1990].) New York State law further mandates, as relevant to this proceeding, that anyone who receives a security deposit from a tenant must, upon appointment and qualification of a receiver in a foreclosure action, turn over the security deposited simultaneously with the delivery of the deed or within five days of the receiver's qualification, and further provides that the failure to comply with the statute is a misdemeanor. (GOL § 7-105; RPAPL 1325[2-a]; People v Elliott, 65 NY2d 446 [1985]; Tischler v Key One Corp, 67 AD2d 886 [1st Dept 1979]; 1-10 Bergman on New York Mortgage Foreclosures §§ 10.13 & 31.06.) Once the security is conveyed, the former owner is free from liability to the tenant for the repayment of the security. (GOL § 7-105[2].)