Closing on Rental Property

[Taylor Cook]

Hi there! Closing on a rental property on Thursday and the settlement statement shows that rents and security deposits are a debit to the seller and a credit to me. I am the agent for the seller as it is my parents, and we are purchasing. 

Does this mean that we will just pay less at closing and not get the physical security deposits? Kinda confused. I thought security deposits had to be retained on hand. 

[Max Ferguson]

@Kevin Sobilo Well, you can here in Colorado by shifting to transaction broker, but it is not ever recommended from a liability and ethics standpoint. 

I believe she is representing herself as the buyer, and the parents may be unrepresented technically? Since it would then be a family deal, this is one of those very few instances that makes sense. I could be totally wrong though!

@Taylor Cook Every deal I've done they cut the security deposits separate from the settlement statement. I guess it is the same thing technically to include them as a credit to buyer, but then you should immediately place them in separate bank accounts and not commingle funds as I'm sure you know.