Missing Security Deposit

[Ronald Cooperman]

Buying a tenant occupied SFR from seller in bankruptcy. The current owner had misappropriated the security deposit. We will inherit the lease. Are we liable to return the security deposit when the tenant moves out?

Any advice is appreciated

[Stephen J Davis]

You should get credit for the deposit at closing if your title company knows what they are doing. Yes, you will owe it so make sure this happens.