Hey Everyone I wanted to know after purchasing a property from someone with inherited tenants do the seller suppose to give over the security deposits of such tenants. Guessing that they are already on current leases with the seller. Also if they do and say that the seller is a slumlord and doesn't have the money in a account to give to you how do you go about that?
The seller must to turn over the security deposits to the new owner. By PA law security deposits must be placed in an escrow account. You as a new owner should notify the tenants with a new bank where their deposits will be held.
If the seller can not come up with the deposit money and prorated rents you could buy the property subject to this amounts. Meaning that you will be putting your own money towards the deposits.
Yuriy is correct. Also if the escrow account is interest barring you are responsible to pay this interest to the tenant. However you are able to take a "management fee" which normally wipes out any minute amount of interest earned. Just be sure to be able to document it.
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