Prorated Rent & Security Deposits at Closing

[Kyle Contente]

I closed on the sale of my rental property recently. Today I received communication from my agent stating that the buyers lawyer had reached out stating they had forgotten to account for prorated rent and security deposits at closing. I was under the impression everything had been taken care of at closing. Do I need to return these legally? We are talking about approximately $3,000.

[Glenna Wood]

If you were the buyer of a rental with existing tenants and you close on the 7th of the month, would you want the seller to keep 3 weeks of income on a property you now own? Skip legal the right thing to do is turn over prorated rent to the new buyer and find another closing agent and/or real estate agent. For a rental property sale rents and deposits are a big item to miss on sale contract and/or the HUD statement..