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 the landlord’s interest in a rental unit is terminated by sale, the landlord is liable with respect to the security deposit, until the landlord transfers the security deposit either to the landlord's successor in interest or return the security deposit to the tenant. The relevant statutory provision in this regard is stated below.MCLS § 554.614reads:
“Upon termination of a landlord's interest in a rental unit whether by sale, assignment, death, appointment of receiver or otherwise, the landlord or his agent is liable with respect to the security deposit, until the occurrence of any of the following:
(a) Transfer of the deposit to the landlord's successor in interest and written notification to the tenant by ordinary mail of the transfer and of the successor's name and address.
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(c) Return of the security deposit to the tenant.”
(a) Transfer of the deposit to the landlord's successor in interest and written notification to the tenant by ordinary mail of the transfer and of the successor's name and address.
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(c) Return of the security deposit to the tenant.”
In the given instance, once the rental property is sold to the new landlord, you will be liable for the security deposit amount until you either transfer the security deposit to the new landlord or return the security deposit 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.
