Ok for Security Deposit to be Returned to Guarantor?

Ok for Security Deposit to be Returned to Guarantor?

New to Real Estate · Santa Cruz, CA · Member since 2019 · 23 posts · 10 votes

Hi Folks

Here's a scenario I was hoping someone with some legal expertise could weigh in on.

My tenant passed away and I've been dealing with the tenant's son and daughter in law. I saw several legal documents including the will naming him as the executor. As such, I reimbursed the security deposit to them written to "The Estate of Tenant's Name". This was the guidance I had read in several landlord publications.

Their response was that they were hoping I could rewrite the check to them personally because they are still several months out from completing the probate court process.

But here is the added context as to why this might be acceptable:

The daughter in law was originally the Guarantor in the lease and actually wrote the check for the security deposit in the first place several years ago. (I didn't own the property at the time but I have a copy of that original lease).

Does this sound like it's ok to return the security deposit to her as the original guarantor or should it still be made out to the Estate and sent to the Executor?

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  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    I'm not an attorney, but if I had accepted a security deposit, wherever that came from, it would be in the name of the tenant. The tenant would be the one to receive the deposit back at the end of the lease (or not, if there were damages). I think you did the right thing by making it out to the estate and I would not recommend making it out to anyone else without a probate order.

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