If an apartment building is sold and the security deposits are given to the new owner, what happens to the interest on the deposits?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If an apartment building is sold and the security deposits are given to the new owner, what happens to the interest on the deposits?
My building was sold and I got a letter from the new owner that said they received my security deposit from the old owner but not the interest on it (only the original deposit). It also said that the old owner was responsible for the interest. Does the old owner have to give me back the interest on that money?
Asked on July 30, 2011 New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
In most sales of commercial real property such as apartment units and complexes, the seller and his tenants sign a document called a "tenant estoppel certificate" that is provided the buyer. This document states the amount of the monthly rental, deposits provided and various terms of the lease including accrued interest.
This document which the tenant receives a copy of allows the tenant to place pertinent information as to his or her lease in the document to place the new owner of the obligations under the lease. In most cases, the old landlord transfers all deposits including accrued interest on the deposits if it has to be paid to the tenants to the new owner.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.