Iowa Landlord Selling the House

Iowa rules on landlord selling the house for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-22.

Short answer: When a landlord's interest ends (for example, by sale), the landlord must within a reasonable time either transfer the rental deposit (minus lawful deductions) to the successor and tell the tenant the new owner's name and address, or return the deposit to the tenant. Iowa Code §§ 562A.12(5)-(6), 562A.16(1)

The rules in Iowa

If the landlord sells the property	When a landlord's interest ends (for example, by sale), the landlord must within a reasonable time either transfer the rental deposit (minus lawful deductions) to the successor and tell the tenant the new owner's name and address, or return the deposit to the tenant. The successor then has the landlord's rights and duties for the deposit; if the tenant does not object within 20 days after written notice of the amount transferred, the successor's duty is limited to that amount. A landlord who sells in good faith to a bona fide buyer is released from liability under the lease for events after giving the tenant written notice of the sale, unless otherwise agreed. The successor's notice must include a stamped envelope addressed to the successor (§ 562A.12(6)). Source: Iowa Code §§ 562A.12(5)-(6), 562A.16(1)

If the landlord sells the property

When a landlord's interest ends (for example, by sale), the landlord must within a reasonable time either transfer the rental deposit (minus lawful deductions) to the successor and tell the tenant the new owner's name and address, or return the deposit to the tenant. The successor then has the landlord's rights and duties for the deposit; if the tenant does not object within 20 days after written notice of the amount transferred, the successor's duty is limited to that amount. A landlord who sells in good faith to a bona fide buyer is released from liability under the lease for events after giving the tenant written notice of the sale, unless otherwise agreed.

The successor's notice must include a stamped envelope addressed to the successor (§ 562A.12(6)).

Source: Iowa Code §§ 562A.12(5)-(6), 562A.16(1)

Iowa vs. neighboring states

Landlord Selling the House: Iowa vs. neighboring states
State	If the landlord sells the property	Tenants in foreclosure
Iowa	When a landlord's interest ends (for example, by sale), the landlord must within a reasonable time either transfer the rental deposit (minus lawful deductions) to the successor and tell the tenant the new owner's name and address, or return the deposit to the tenant. The successor then has the landlord's rights and duties for the deposit; if the tenant does not object within 20 days after written notice of the amount transferred, the successor's duty is limited to that amount. A landlord who sells in good faith to a bona fide buyer is released from liability under the lease for events after giving the tenant written notice of the sale, unless otherwise agreed. Iowa Code §§ 562A.12(5)-(6), 562A.16(1)	Not verified yet
Illinois	Not verified yet	Yes, beyond the federal PTFA. A new owner after foreclosure (mortgagee, receiver, certificate or deed holder, or sale purchaser) may end a bona fide residential lease only at the end of its term, with at least 90 days' written notice. Month-to-month or week-to-week bona fide leases also require at least 90 days' written notice. An individual buyer who will live in the unit may end the lease on 90 days' notice. For occupants not named in the foreclosure: if the occupant is current on rent, was never told in writing where to pay, or made good-faith efforts to pay, any eviction order must let them stay for the shorter of 120 days after notice of the hearing or the rest of the lease (at least 30 days). Records of these eviction cases are sealed. 735 ILCS 5/9-207.5; 735 ILCS 5/15-1701(h)
Minnesota	When a landlord's interest ends by sale, assignment, death, receivership or otherwise, the landlord's successor takes on all of the landlord's rights and obligations for the security deposit. If the tenant gets written notice of the deposit amount being transferred or assumed (with a stamped envelope addressed to the successor) and does not object within 20 days, the successor's duty to return the deposit is limited to the amount stated in the notice. Minn. Stat. §504B.178, subd. 6	After a foreclosure redemption period ends, the successor must give a tenant at least 90 days' written notice to vacate. A bona fide lease running more than 90 days past redemption must be honored to the end of its term, unless the new owner will live there (then 90 days). Contract-for-deed cancellation requires 2 months' notice. A landlord that has received a foreclosure or contract-for-deed cancellation notice may sign only short leases (no longer than the redemption period) and must tell prospective tenants in writing before taking rent or a deposit ($500 penalty). Minn. Stat. § 504B.285, subd. 1a, 1b; § 504B.151
Missouri	Not verified yet	After a foreclosure sale, the new owner must give the residential tenant written notice (certified/registered mail, plus posting on the door) that the sale happened, who the new owner is, and that the tenant has at least 10 business days to leave. No eviction case can be filed within those 10 business days. The notice does not create a tenancy with the new owner. Federal PTFA rights are separate. RSMo 534.030.2-.3
Nebraska	When a landlord sells a rental in a good-faith sale to a genuine buyer, the selling landlord is released from liability under the lease and the Uniform Residential Landlord and Tenant Act for events after the tenant gets written notice of the sale, unless otherwise agreed. The seller stays liable for the tenant's security deposit and prepaid rent unless the seller assigns them to the buyer with written notice to the tenant. Whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. Neb. Rev. Stat. §§ 76-1420(1), 76-1416(5)	No Nebraska statute was found that protects residential tenants in foreclosure beyond federal law (federal PTFA). Under the Act, the disclosure duty applies to successor owners (§ 76-1417(2)). The person holding the landlord's interest when the tenancy ends is responsible for returning the security deposit (§ 76-1416(5)). Neb. Rev. Stat. §§ 76-1416(5), 76-1417(2)
South Dakota	South Dakota has no state law in its lease chapter (SDCL 43-32) that requires a selling landlord to transfer the security deposit to the buyer or to notify tenants of the sale. The chapter provides that a tenant has the same remedies against the landlord's assignees (such as a buyer of the landlord's interest) for breach of the lease as against the original landlord, except on covenants against encumbrances or relating to title or possession. SDCL ch. 43-32 (reviewed); SDCL 43-32-21	No statute — South Dakota adds no tenant protections beyond the federal PTFA. After a mortgage or execution sale, once the redemption period expires and the deed is delivered, the buyer may bring an FED action against an occupant who stays. SDCL 21-16-1(5); chs. 21-16, 43-32 checked
Wisconsin	A landlord's interest can be transferred (for example, by sale) unless the lease expressly restricts it, and the lease's terms that are not personal to the original parties stay enforceable by and against the new owner. A new owner is liable for, or can recover for, breaches that happen while it owns the property, and the same court remedies apply between the tenant and the new owner. The statute does not set a specific security-deposit transfer procedure. Wis. Stat. § 704.09(1), (3), (4)	No statute — neither the landlord-tenant chapter (ch. 704) nor the real estate foreclosure chapter (ch. 846) contains tenant-specific foreclosure protections. The federal PTFA (90-day notice; bona fide leases honored to term, with exceptions) governs. Wis. Stat. ch. 704; ch. 846 (checked)

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