I have a question about transferring security deposits. I just closed on 2 units and I completely forgot to ask the owner to transfer the security deposits at the closing. We closed about a week ago and now I am trying to contact the owner to get the security deposits for the tenants occupying the 2 units I closed on.
*Did I need to have the transfer of the security deposits in writing in the Agreement of Sale?
*How does this procedure usually take place?
Any advice is much appreciated, thanks.
I believe the title company did it for mine. I can't think of any legal reason the old owner would not be required to give them to you. It's neither his nor your money to keep. It's just collateral.
You are in luck. You live in Pennsylvania therefore according to state law you must as a landlord disclose where the security deposit is located to your tenants. If it's required to be in an interest-bearing account, the tenant is entitled to receive the interest if he or she lives in a rental property for 2 or more years.
In addition to this you as a landlord must return the security deposit to the tenant within 30 days of them moving out of the property.
So long story short if you did not transfer the security deposit from the purchase of this sale the original owner is liable to disclose this information to you. It's the law.
Get in contact with them find out where that money is at and how long the tenant has been occupying that property. Otherwise one of you will be held liable for that deposit.
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