General Real Estate Investing

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Andrew C.
  • Little Neck, NY
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Title Company Forgot To Include Security Deposit for Rental Unit

Andrew C.
  • Little Neck, NY
Posted Jan 5 2023, 17:02

My title company forgot to include the security deposit for the tenant I inherited and when I asked her if she could get it she provided a signed statement from the seller that there was no security deposit left (he had used it for late payments, etc). However, I believe it is illegal to use a tenant's security deposit while they are still residing in the residence. Is there any legal action I can take? Any suggestions? Thanks in advance for your time.

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Allan Smith
  • Rental Property Investor
  • Nashville, TN
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Allan Smith
  • Rental Property Investor
  • Nashville, TN
Replied Jan 5 2023, 17:15

Even if it was illegal, are you going to sue somebody over a few hundred dollars? That's less than the attorney will cost.

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William Broxson
  • Real Estate Agent
  • Youngtown Ohio
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William Broxson
  • Real Estate Agent
  • Youngtown Ohio
Replied Jan 5 2023, 19:56

Next question would be did you read and sign the settlement statement from title? I don't believe the title company is to blame here.