What happens to the security deposit when a lease is transferred?
First, not all leases require security deposits. Each leasing company has their own policy for how to handle any security deposits during a lease transfer. 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. Information on how many leasing companies handle security deposits is included within Leasing Company Information at this site. The disposition of any security deposit is often a point of negotiation between the Seller and Buyer as well.
First, not all leases require security deposits. Each leasing company has their own policy for how to handle any security deposits during a lease transfer. 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 disposition of any security deposit is often a point of negotiation between the Seller and Buyer as well.
Each leasing company has their own policy for how to handle security deposits during a lease assumption. Most transfer the security deposit to the assuming lessee, while others return the deposit to the original lessee and require a new deposit from the assuming lessee. Some of them did not require a security deposit to begin with. Information on how leasing companies handle security deposits is included within Lease Company Information.
