Security Deposit When Property Sold
In this guide, you'll learn how to handle security deposits when a rental property is sold.
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
Want to know you're getting it right?
- Unlimited Attorney Help - Talk to a lawyer without getting billed.
- Instant Answers - Step-by-step guides to help solve your problems.
- Ironclad Lease - Updated monthly with the latest legal developments.
- Landlord Forms - New forms are added monthly to make your life easier.
- Private Community - Connect with other Illinois Landlords.
- On-Demand Learning - New content to help you get the legal stuff right.
- Monthly Newsletter - Never miss important legal updates again.
- Exclusive Discounts - Save money on things successful Landlords use.
Security Deposit Return Act - 765 ILCS 710/
Subscribe to The Brief for emails that help you get the legal stuff right (without going broke).
This article is for general information purposes only and should not be considered legal advice or legal opinion on any specific case and/or circumstance. This article does not create an attorney/client relationship. No guarantee for accuracy, completeness, or changes in the law. The choice of a lawyer is an important decision and should be based solely on advertisements.