Deposit refund after the property sale

2 Replies

We recently purchased a property at Atlanta, GA with tenant living in the property. On the lease, there was certain amount of deposit from the tenant. When we did the closing, the attorney put the deposit in an escrow account.

After the sale, the previous owner states that the tenant has not paid the rent for a couple of months, so the deposit has been forfeited therefore should be returned to the previous owner. Now the inherit tenant did not pay the rent to us and is currently in eviction. In this case, can we claim the deposit? Or is it up to the previous owner and the new owner to figure out a way to divide the deposit? 

Thanks!

@Phil C. Since an attorney has this in an escrow account it will be up to him as to who gets this money.

I would ask him for the money and see what happens and then focus my attention on getting the old tenant evicted and a new one in place and paying rent.

I think once the property is sold the seller forfeits all rights to any additional monies. YOU are the one who is entitled to the security deposit, as YOU are the one who will have to pay for any damages. It was up to him to collect rent prior to closing, or raise the price to compensate for that. The tenant will get that security until you show damages or non payment of rent to YOU.

Tell the seller to kick rocks with bare feet! He's done with this property!