Seller Returned Security Deposit to Tenants before Closing
Our closing is scheduled for this week for a multi-family purchase, and we just found out that the seller returned the security deposits to the current tenants. We are inheriting the tenants in this purchase.
What recourse do we have to adjust for the now non-existent security deposits?
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Cross-posted from buying and selling forum
Most Popular Reply
#3 Managing Your Property Contributor
As you haven't closed, did the contract state the security deposits were to be transferred to you? If so, then the seller has to give you that money. If they gave it to the tenants, then the seller is out that money as you are still owed it. The seller needs to get it back or give you the equivalent. The security deposit should have been included as part of the the purchase of the home and written in the contract.