I am looking at structuring a deal for an apartment complex and wanted to ask this question:
When and how are the deposits transferred to the new owner? Is this done by the seller in cash at closing? Please advise.
Thank you - J
The normal way of doing this legal changes from state by state. It would be wise to bring this up with your attorney in Texas before doing anything. Whatever you choose to do, make sure you document everything.
Ask your escrow/closing agent to take care of this at closing. It should be on the settlement and taking out of net proceed to seller. It's much simpler and everything is documented by a third party.
@Vincent V. as Vincent said, it will be a credit to the buyer on the settlement statement.
As stated, insure your Texas RE Attorney and closing agent are in the loop and document all. I can refer you to a Texas Real Estate Attorney if needed.
I would love the referral please.
All - Thank you for all of the inputs and information.
Let's Make Deals! - J