Security Deposit Transfer
Hey all I️ have been reading these forums for a while. Really amazing info.
I️ am buying two rentals from another investor and he collected a security deposit three years ago when the tenant moved in. I am buying the house from him and will be transferring the section 8 income into my LLC. My question is what is the procedure for the security deposit? Should the current owner transfer the money over to me? Any advice on this would be appreciated. Thank you
It should be transfered and on the HUD statement at closing in a normal sale. You need to see how the section 8 transfer works, if it is different. Have an estopel signed by the tenant with the basic terms of the lease and deposit on hold. Again section 8 verify what you need to do in your area.
Got it. Thank you
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Everything should transfer. In fact, even the rent from the current month should be prorated at COE so that whatever days are left in the month go to you. Security deposit is transferred too.
So I️ just signed a cash deal to put it under contract yesterday and then I️ woke up thinking about this today.
What should I tell my realtor?