Am I responsible for the security deposit by the tenant if I sold the rental property?
Full Question:
I have rented out my house in Michigan. However, I am planning to sell the rental property to a friend. Once the rental property is sold, will I be responsible for the security deposit deposited by the tenant? Am I supposed to transfer the security deposit to the new owner?
01/13/2017 |
Category: Landlord Ten... ยป Security Dep... |
State: Michigan |
#30100
Answer:
MCLS § 554.614reads:
“Upon termination of a landlord's interest in a rental unit whether by sale, assignment, death, appointment of receiver or otherwise, the landlord or his agent is liable with respect to the security deposit, until the occurrence of any of the following:
(a) Transfer of the deposit to the landlord's successor in interest and written notification to the tenant by ordinary mail of the transfer and of the successor's name and address.
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(c) Return of the security deposit to the tenant.”
(a) Transfer of the deposit to the landlord's successor in interest and written notification to the tenant by ordinary mail of the transfer and of the successor's name and address.
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(c) Return of the security deposit to the tenant.”
In the given instance, once the rental property is sold to the new landlord, you will be liable for the security deposit amount until you either transfer the security deposit to the new landlord or return the security deposit to the tenant.
