If an apartment building is sold and the security deposits are given to the new owner, what happens to the interest on the deposits?

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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 10 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.


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