Security Deposit When Property Sold
In this guide, you'll learn how to handle security deposits when a rental property is sold.
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Overview
The new property owner is on the hook for the Tenant's security deposit, even if the security deposit was not transferred or otherwise accounted for at the real estate closing. The original owner remains liable as well.
New owners must do this within 21
If the security deposit is transferred from the old owner to the new, then the new owner has 21 days after the transfer of the security deposits and receipt of the name and address of any Tenant who paid a deposit, the new owner shall post a written notice on the primary entrance of each dwelling unit at the property with respect to which the holder or purchaser has acquired actual possession of a security deposit. The written notice shall state that the holder or purchaser has acquired the security deposit paid by the Tenant in connection with the rental of that dwelling unit. 765 ILCS 710/1.2
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Statute
Security Deposit Return Act - 765 ILCS 710/
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