Who owes us our deposit if the leasing company that managed our rental was terminated and the landlord took over?

We are renting a house that was originally maintained by a leasing company. Halfway through our lease, the owners took over control of the property. They wanted us to sign a new lease but we did not. So our only lease is with the company that is no longer leasing the house. The owner is claiming that we must get the deposit back from the leasing agency. Since we did not sign a new lease are we required to pay rent/ stay in the house until lease expires? What would happen if we stopped paying? What would happen if we did not clean/paint when we move?

Asked on March 20, 2011 under Real Estate Law, Indiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I would not do anything that would in any way violate the terms of your lease agreement just yet.  You need to establish the status of your lease.  By that I mean that you need to understand what happens to it under the situation you have described above.  The leasing company was the agent of the owner here and bound you to a contract on behalf of the owner.  You need to read your lease carefully as to the issue here.  I would want to see if a termination of the agreement between the leasing company and the owner terminates your agreement (and I would highly doubt it) before you do anything.  But if the lease is voidable then you need to also see if there is a method for termination stated in the lease and if not then you would have to follow applicable state law.  Now, I would think that the agreement between the leasing company and the landlord transfers the security deposit but maybe not.  I do not think that the court's would make you chase it down though.  Send a letter to both of them regarding the deposit and quite state law on return when you have figured out how you will proceed. You may want to pay an attorney a consultation fee here.  Good luck.


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.