ripped off... - Posted by Jay

import · November 18, 2004, 5:54pm

Posted by Kim-OH on November 21, 2004 at 09:34:06:

I am sorry Rob, that post I made should have included Eric’s name not yours.

Kim

import · November 18, 2004, 5:54pm

ripped off… - Posted by Jay

Posted by Jay on November 18, 2004 at 18:54:46:

Looking for a little advise…

I just closed on a rental property last month. The guy that I bought the house from refuses to give me the security deposit from the existing tennant of $400.00. Do I have any recourse?

import · November 25, 2004, 6:04pm

Re: Yes , - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on November 25, 2004 at 19:04:59:

Yes, you got ripped off.

Leases go with the property, and security deposits go with the lease. You might just want to sue the seller in small claims court (and win). This would be the cheap and easy way out for you.

Tom explains what happens in Fl, and it is nearly the same in OH. We don’t know where you are, but this originates in OLD English common law. This situation works just about the same everywhere, with some minor differences from state to state.

Kim is not a lawyer, but she is correct.

import · November 19, 2004, 9:32pm

Re: ripped off… - Posted by Tom-FL

Posted by Tom-FL on November 19, 2004 at 22:32:05:

I did a little poking around and the best I could find is this. It doesn’t even speak to what happens when the property changes hands. This is Ohio.

http://onlinedocs.andersonpublishing.com/oh/lpExt.dll/PORC/24eb0/256d1/25737?fn=document-frame.htm&f=templates&2.0#

import · November 19, 2004, 5:02pm

Re: ripped off… - Posted by Tom-FL

Posted by Tom-FL on November 19, 2004 at 18:02:58:

What state are you in?

Here’s how it goes around here (FL):

http://www.flsenate.gov/statutes/index.cfm?mode=View%20Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=&URL=CH0083/Sec49.HTM

FS 83.49(7) Upon the sale or transfer of title of the rental property from one owner to another, or upon a change in the designated rental agent, any and all security deposits or advance rents being held for the benefit of the tenants shall be transferred to the new owner or agent, together with any earned interest and with an accurate accounting showing the amounts to be credited to each tenant account. Upon the transfer of such funds and records as stated herein, and upon transmittal of a written receipt therefor, the transferor shall be free from the obligation imposed in subsection (1) to hold such moneys on behalf of the tenant. However, nothing herein shall excuse the landlord or agent for a violation of the provisions of this section while in possession of such deposits.

import · November 18, 2004, 6:24pm

Re: ripped off… - Posted by Rob

Posted by Rob on November 18, 2004 at 19:24:44:

I’m not an expert but, did you include this in your purchase agreement and also prorated rents. Also, I would assume since the tenant has not moved out of the property then the previous owner should not keep the deposit, since it can be credited back to the tenant when they move out. Also, are you sure it was a deposit and not something funny the previous owner made up. Take a look at the rental agreement. You can always consult an attorney, the consultation is free.

import · November 19, 2004, 9:04am

Re: ripped off… - Posted by eric

Posted by eric on November 19, 2004 at 10:04:22:

You can demend a new deposit from the tenant. Then, the tenant can fight it out with the old landlord. This is something that should have been in the purchase contract.

import · November 21, 2004, 8:32am

Re: ripped off… - Posted by Kim-OH

Posted by Kim-OH on November 21, 2004 at 09:32:03:

Eric,

I am not an attorney so this is not to be construed as legal advice.

I think you need to do some research about this issue before you speak. How is it the tenant’s problem that the new owner failed to address this issue at the time of purchase. Your answer is all to familiar of today’s ethics of I made a mistake and now I need to make someone else accountable for it.

I have only purchased a two family and I knew the residents of the building so I was able to do my due diligence with the tenants. When purchasing a property with tenant(s) in place it is recommended that you get estoppel letters from the tenants spelling out when and how much security they paid the owner from whom you are purchasing. You will then have in hand the proof necessary to prod the owner to do the right thing and convey those sums at closing or for those sums to be reflected as credits to you at closing. Self help and attempting to force the tenant to pay a second security deposit will only serve to start up a disagreement that will likely result in the tenant leaving at best and consulting with an attorney at worst. I wouldn’t go there if I were you Rob.

HTH