When Inheriting Tenants- Need a new lease?

Question

We purchased a building in Jan with a bad tenant in Chicago, IL.
	The previous landlord had a simple 2 page lease without information about security deposit, etc..

Now that tenant is suing us for not disclosing where we kept the security deposit funds among other items of missing paperwork found in ordinary leases.  The fee is 2x security deposit plus attorney fees

The question is, do they have an argument if the lease they have is signed by the old owner and not by us?

Brie Schmidt · Answer

@D.J. Paris III - I am not a lawyer, but according to section 5-12-080-E of the CLTO yes, you had 14 days to notify her about the transfer of the security deposit or you are in violation of the CLTO.  As far as the previous landlord not providing an adequate lease based on the rules of the CLTO - I do not know who would be responsible.  But she got you about the SD so it might not even matter.  I think the 2x SD fine can only be given once, not per occurance

In the event of a sale, lease, transfer of ownership or control or other direct or indirect disposition of residential real property by a landlord who has received a security deposit or prepaid rent from a tenant, the successor landlord of such property shall be liable to that tenant for any security deposit, including statutory interest, or prepaid rent which the tenant has paid to the transferor. The successor landlord shall, within 14 days from the date of such transfer, notify the tenant who made such security deposit by delivering or mailing to the tenant's last known address that such security deposit was transferred to the successor landlord and that the successor landlord is holding said security deposit. Such notice shall also contain the successor landlord's name, business address, and business telephone number of the successor landlord's agent, if any. The notice shall be in writing. The transferor shall remain jointly and severally liable with the successor landlord to the tenant for such security deposit or prepaid rent, unless and until such transferor transfers said security deposit or prepaid rent to the successor landlord and provides notice, in writing, to the tenant of such transfer of said security deposit or prepaid rent, specifying the name, business address and business telephone number of the successor landlord or his agent within ten days of said transfer.

http://www.cityofchicago.org/city/en/depts/dcd/supp_info/rents_right.html

Look at the full CLTO on this link

Brie Schmidt · Answer

@D.J. Paris III - I am not a lawyer, but according to section 5-12-080-E of the CLTO yes, you had 10 days to notify her

In the event of a sale, lease, transfer of ownership or control or other direct or indirect disposition of residential real property by a landlord who has received a security deposit or prepaid rent from a tenant, the successor landlord of such property shall be liable to that tenant for any security deposit, including statutory interest, or prepaid rent which the tenant has paid to the transferor. The successor landlord shall, within 14 days from the date of such transfer, notify the tenant who made such security deposit by delivering or mailing to the tenant's last known address that such security deposit was transferred to the successor landlord and that the successor landlord is holding said security deposit. Such notice shall also contain the successor landlord's name, business address, and business telephone number of the successor landlord's agent, if any. The notice shall be in writing. The transferor shall remain jointly and severally liable with the successor landlord to the tenant for such security deposit or prepaid rent, unless and until such transferor transfers said security deposit or prepaid rent to the successor landlord and provides notice, in writing, to the tenant of such transfer of said security deposit or prepaid rent, specifying the name, business address and business telephone number of the successor landlord or his agent within ten days of said transfer.
	
	
		http://www.amlegal.com/nxt/gateway.dll/Illinois/chicago_il/title5housingandeconomicdevelopment/chapter5-12residentiallandlordsandtenant?f=templates$fn=default.htm$3.0$vid=amlegal:chicago_il

In the event of a sale, lease, transfer of ownership or control or other direct or indirect disposition of residential real property by a landlord who has received a security deposit or prepaid rent from a tenant, the successor landlord of such property shall be liable to that tenant for any security deposit, including statutory interest, or prepaid rent which the tenant has paid to the transferor. The successor landlord shall, within 14 days from the date of such transfer, notify the tenant who made such security deposit by delivering or mailing to the tenant's last known address that such security deposit was transferred to the successor landlord and that the successor landlord is holding said security deposit. Such notice shall also contain the successor landlord's name, business address, and business telephone number of the successor landlord's agent, if any. The notice shall be in writing. The transferor shall remain jointly and severally liable with the successor landlord to the tenant for such security deposit or prepaid rent, unless and until such transferor transfers said security deposit or prepaid rent to the successor landlord and provides notice, in writing, to the tenant of such transfer of said security deposit or prepaid rent, specifying the name, business address and business telephone number of the successor landlord or his agent within ten days of said transfer.

http://www.amlegal.com/nxt/gateway.dll/Illinois/chicago_il/title5housingandeconomicdevelopment/chapter5-12residentiallandlordsandtenant?f=templates$fn=default.htm$3.0$vid=amlegal:chicago_il