Transference of Security Deposit to new Homeowner

Transference of Security Deposit to new Homeowner by Lynn on July 20, 2012 @17:03

I bought my home, an owner occupied 3-unit, several years ago. At the time, both units were rented under verbal month-to-month agreements. I have no recollection of receiving a security deposit from the previous homeowners and can't find a record of such receipt. I did sign a written agreement with the tenants, which has no mention of a security deposit. (The amount in the security deposit clause is listed as "N/A".) One of my tenants will be moving out soon and asked about the security deposit, which they say they gave to the previous landlord (w/o a written agreement). I told them I would research the situation. What are my obligations in this situation?

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Re: Transference of Security Deposit to new Homeowner by Bryan (Ia) on July 20, 2012 @17:09	[ Reply ]

If your written says "N/A," none.

Re: Transference of Security Deposit to new Homeowner by A.T.SF (CA) on July 20, 2012 @17:22	[ Reply ]

Usually during the time of closing any security deposits held by the previous owner would have been documented and transferred along with any written rental agreement. Since the original units were verbal with the original owner, your tenant will have to show proof of the original security deposit and you may have to stand by your tenant in small claims court to recover the fee.

Re: Transference of Security Deposit to new Homeowner

Re: Transference of Security Deposit to new Homeowner by NY-LL on July 20, 2012 @19:30	[ Reply ]

The tenants should be able to provide a cancelled check for the financial security provided at move-in. In order to remedy the issue, request that both tenants provide a copy of their first monthly rent checks and the financial security deposit check provided at move-in. Send the tenants' check copies to the previous landlord and closing attorneys to request transfer of the security deposits for both tenants to the current landlord.

Re: Transference of Security Deposit to new Homeowner by Jake on July 20, 2012 @19:47	[ Reply ]

"What are my obligations in this situation?" Your obligation was to obtain the security deposit on the rentals at the closing whey you bought the property. You can not engage in finger pointing now that it is your turn to transfer the deposits because you do not have a "recollection" of receiving them. Recollection or not, it will be hard to believe that all three units were rented without deposits and that you do not have a recollection of collecting them from the seller. It is time to pay up. Don't you have recollection of receiving the closing papers from when you bought the rental? How do you believe this recollection thing will play out before a Judge?

Re: Transference of Security Deposit to new Homeowner

Re: Transference of Security Deposit to new Homeowner by Anonymous on July 21, 2012 @03:01	[ Reply ]

I don't think you have any obligation, legally. But help the tenants out by providing them with any information you have on the previous owner. Do you have a current address, or a working phone number? The tenanats can contact the past owner, and see what he says. You could also show your papers to the tenant if you are comfortable doing this, so they can see that you never received any security deposits along with the property. I would point out the N/A as well. Let the tenants know that you agree with them that they should get the sec dep. back, but unfortunately, they will have to contact the past owner themselves.

Re: Transference of Security Deposit to new Homeowner