Full question:
I have rented out my house in Michigan. However, I am planning to sell the rental property to a friend. Once the rental property is sold, will I be responsible for the security deposit deposited by the tenant? Am I supposed to transfer the security deposit to the new owner?
- Category: Landlord Tenant
- Subcategory: Security Deposit
- Date:
- State: Michigan
Answer:
In Michigan, when you sell a rental property, you remain responsible for the tenant's security deposit until you either transfer it to the new owner or return it to the tenant. According to Michigan law (MCLS § 554.614), your liability continues until one of the following occurs:
- You transfer the security deposit to the new owner and notify the tenant by mail of the transfer and the new owner's contact information.
- You return the security deposit directly to the tenant.
So, after selling the property, you must either pass the deposit to the new landlord or refund it to the tenant.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.