What happens to the security deposit in a lease transfer?
The return of the security deposit depends on the leasing company’s own policies. Some leasing companies will return the security deposit to the original lessee. Others will either retain your security deposit or request a new security deposit from the assuming lessee. The issue of how the deposit is handled should be discussed between the buyer and seller before the lease transfer.
The handling of the security deposit will depend on the leasing company’s own policies. First of all, not all leases require security deposits. Some return the deposit to the original lessee and require a new deposit from the assuming lessee. Others allow the security deposit to transfer to the new lessee. The issue of how the deposit is handled and disposed to should be negotiated with between the buyer and seller of the lease before the transfer.
