Wanna sue your real estate broker?Mar 09, 2023
This real estate broker should count his blessings.
He almost screwed up - big time.
His client bought a rental house.
And the security deposit transferred to the buyer at closing.
But the client didn't know this little law.
We'll spare you the legal mumbo jumbo and just say this:
If a security deposit transfers to a new owner, the Tenant's gotta know.
The notice must be in writing.
And given to the Tenant within 21 days.
We see brokers (and landlords) miss this all the time.
And know a few landlords who wanted to sue their brokers because of it.
You don't say...
You can avoid a whole lotta finger pointing if you remember this:
Anytime a security deposit transfers to a new owner, send notice to the Tenant.
And get it done before 21 days are up.
By Landlord Legal
Hot diggity dog, that's issue #60 of The Brief!
Check out this free guide for other common mistakes folks make with security deposits when buying rental property. It's an easy and quick read that'll keep your Tenants happy (and wallet full).