Security Deposits and prorated rent on a Short Sale
Hi All,
I am set to close on a duplex in Milwaukee and I am running into an issue with securing a credit at closing for the security deposits and prorated rent on the property. The real estate contract says that the security deposits are to be assigned and rents are to be prorated to the buyer at closing. Seller's agent is claiming that in a short sale transaction, getting a credit for the security deposits is "unheard of" and that since the rent is not due until the 5th (even though the rent grace period ends the 3rd - the day of closing) they will not prorate the rent. While I understand that they cannot prorate rent they have not received, I am a little concerned that I will be stuck in the middle with the tenant claiming they paid the property management company and the property management company claiming they haven't received it. It puts me in a difficult position, especially if I close without some type of protection here.
I am crazy to think that security deposits should be assigned to the buyer at closing? When the tenants move out they are going to expect their security deposit back.