Do security deposits transfer with a property sale?
When you purchase an investment property that already has tenants in place, does the seller transfer the security deposits to the buyer as part of the sale or is it their responsibility to return the security deposits to the tenant and then the buyer collects new security deposits from the tenants once the property is transferred?
Most Popular Reply
Yes. I also recommend requiring estoppel certificates be completed by the tenants and provided to you for review prior to the close of escrow. This way, you are aware of what the tenants position is from their point of view versus the sellers point of view and any differences can be worked out prior to COE.