What Happens to Your Lease When the Landlord Sells? Laws by State (2026)
Whether your lease continues after the rental is sold or foreclosed, and who must return your security deposit — state by state.
Landlord Selling the House: all 50 states and DC
| State | If the landlord sells the property | Tenants in foreclosure |
|---|---|---|
| Alabama | When a landlord sells a rental in a good-faith sale, the seller is relieved of liability under the lease and the landlord-tenant act for events that happen after the tenant gets written notice of the sale, unless the parties agreed otherwise. The seller stays liable to the tenant for the security deposit the tenant could recover and for all prepaid rent. Separately, whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. Ala. Code §§ 35-9A-205(a), 35-9A-201(h) | No statute protecting tenants in foreclosure was found in the landlord-tenant Act. The disclosure duty in § 35-9A-202 binds any successor landlord or owner. Tenants rely on the federal Protecting Tenants at Foreclosure Act (90-day notice). Ala. Code Title 35, Ch. 9A (checked); § 35-9A-202(b) |
| Alaska | When rental housing is sold, the new owner is responsible for refunding security deposits and prepaid rent owed to tenants who move out after the transfer. If the previous owner properly transfers the deposits and prepaid rent to the buyer and notifies the tenants of the sale, the previous owner is relieved of further responsibility; if not, the previous owner stays responsible to the tenants for deposits and prepaid rent, even though the new owner is also responsible. Alaska Dept. of Law, The Alaska Landlord & Tenant Act: What It Means to You (2024) | No separate state rule was found. The Department of Law points to the federal Protecting Tenants at Foreclosure Act and adds three points. If the lender or foreclosure buyer keeps the leases going, or fails to notify tenants of the foreclosure, it becomes the landlord and is liable for security deposits. When a property is sold, a new owner must give the proper notice to end a tenancy. The seller remains liable for deposits it does not transfer to the buyer. Alaska Dept. of Law handbook (2024), pp. 8, 27, 34-35; AS 34.03.070 (deposits, as summarized) |
| Arizona | When a landlord sells a rental in a good-faith sale to a genuine buyer, the seller is relieved of liability under the lease and the landlord-tenant act for events after the tenant gets written notice of the sale, unless otherwise agreed; the seller stays liable for the deposit money and property the tenant is owed under the deposit statute. Whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. When an apartment community is sold, the landlord must hand the buyer at closing the security deposit records, each tenant's file including rental agreements, and other required documents it has. A.R.S. §§ 33-1325(A), 33-1321(H), 33-1330 | If a lease is signed after a foreclosure has started, the owner must include a written notice that the property is undergoing foreclosure. The notice must say whom to contact (court, trustee or attorney) and the sale date, or that no date is set. If the owner first gets a trustee's sale notice or foreclosure notice after the lease is signed, the owner must give the tenant that notice within 5 business days. If the owner fails to do so, the tenant may give a written notice under § 33-1361 (landlord noncompliance), recover damages and get an injunction, and must get the security deposit back under § 33-1321. This does not apply to buildings with 4 or more connected units. A.R.S. § 33-1331 |
| Arkansas | Arkansas's security-deposit law binds whoever holds the landlord's interest when the tenancy ends: a transferee, assignee or other successor landlord is bound by the security-deposit subchapter. The statutes reviewed do not set a notice the seller or buyer must give the tenant about the sale. Ark. Code Ann. § 18-16-302 | No state statute found protecting tenants when a rental is foreclosed or sold. Tenants rely on the federal Protecting Tenants at Foreclosure Act (90-day notice). Ark. Code Ann. Title 18, Ch. 17 (checked) |
| California | If a landlord voluntarily sells the rental, the tenants' rights do not change: a tenant with a lease can stay to the end of it on the same terms, and a new owner can end a month-to-month tenancy only as the law allows (just cause may be required under the Tenant Protection Act or local rules). The selling landlord must either transfer the deposits (less lawful deductions) to the buyer or return them to the tenants with an itemized statement, and must notify each tenant in writing, by first-class mail or personal delivery, of the transfer, any deductions, the amount transferred, and the new landlord's name, address and phone number. If the seller does neither, both the seller and the new landlord are responsible for the deposits, and the new landlord may not charge current tenants a new deposit just to make up for deposits it failed to get from the seller. Cal. Dept. of Real Estate, California Tenants: A Guide to Residential Tenants' and Landlords' Rights and Responsibilities (2026 ed.) | When a rental is sold at foreclosure, a month-to-month or periodic tenant must get 90 days' written notice to quit before being removed. A tenant with a fixed-term lease signed before the sale may stay until the lease ends, and the lease survives the sale. The new owner may end it early with 90 days' notice only if: the buyer will live in the unit as a primary residence; the tenant is the borrower or the borrower's spouse, child or parent; the lease was not an arm's-length deal; or the rent is far below market (unless subsidized). The buyer must prove that an exception applies. Local just-cause ordinances still apply. When a sale is noticed, the trustee must post on the property, and mail to 'Resident', a statutory notice telling tenants about these rights. Cal. Code Civ. Proc. § 1161b; Cal. Civ. Code § 2924.8 |
| Colorado | When a landlord's interest ends by sale, assignment, death, receivership or otherwise, whoever holds the security deposit must, within a reasonable time, either transfer it (less lawful deductions) to the new owner and notify the tenant by mail of the transfer and the new owner's name and address, or return it (less lawful deductions) to the tenant. Once that is done, the former holder is relieved of further liability, and the new owner takes on all the rights and duties of a landlord holding the deposit. A lease clause waiving these protections is void. C.R.S. § 38-12-103(4)-(7) | Colorado's foreclosure law gives tenants notice rights but does not let them stay after the sale. A lessee is treated as a lienor (with no lien amount) in foreclosure proceedings. A lessee with an unrecorded possessory interest in a single-family or multi-unit residence must be mailed the foreclosure notices by regular mail, which is complete when sent to the lessee at the property or to 'Occupant' at the address. The foreclosure mailing list must also include 'occupant' at the property address. Rights of a lessee whose lease is recorded are not affected. Beyond this, tenants rely on the federal PTFA 90-day notice. C.R.S. § 38-38-305(1), (1.5); § 38-38-100.3(14)(c)-(d) |
| Connecticut | Unless otherwise agreed, a landlord who sells the rental to a good-faith buyer is relieved of liability under the lease and the landlord-tenant laws for events after the tenant gets written notice of the sale. Any sale or other transfer of the landlord's interest assigns the security interest in all tenants' deposits to the new owner (the successor), and the selling landlord must withdraw the deposits plus accrued interest from escrow and deliver them to the successor. The successor is liable for returning any part of a deposit that becomes due while it is the landlord. Conn. Gen. Stat. §§ 47a-10(a), 47a-21(c), (e), (h)(3) | When residential property is foreclosed and a bona fide tenant (not the owner, in an arm's-length lease) is in possession when title vests, ejectment is stayed and no eviction may start until: (1) for a written lease signed more than 60 days before the foreclosure began, the earlier of the lease end date or 60 days after title vests; or (2) for other tenancies, 30 days after title vests. Eviction for an ordinary ground, such as nonpayment, may proceed sooner. Any cash-for-keys offer from the lender or new owner must be at least the greatest of: the security deposit plus interest; 2 months' rent; or $2,000. The tenant cannot be required to waive other rights to receive it. The federal PTFA's longer 90-day notice also applies where it governs. Conn. Gen. Stat. § 47a-20e; § 47a-20f |
| Delaware | If the landlord's interest in a rental is sold or transferred and the tenant used a surety bond instead of a cash security deposit, the new landlord must accept the tenant's surety bond and may not require an additional security deposit during the current lease term. When the lease is renewed, the new landlord may not require a bond or deposit that, together with the existing one, is more than one month's rent. 25 Del. C. § 5514A(j) | No state tenant-protection statute found in the Landlord-Tenant Code. The Code only lists, as a ground for summary possession, a tenant holding over more than 5 days after the property is sold at foreclosure and title is perfected. Federal PTFA protections (90-day notice and the right to finish a bona fide lease) govern in practice. 25 Del. C. § 5702(6); 25 Del. C. Chs. 51-57 (checked) |
| District of Columbia | A sale of the building does not by itself end a tenancy: the D.C. Tenant Bill of Rights says a landlord may not evict a tenant because of a sale or foreclosure. Before selling a housing accommodation, the owner must give the tenant an opportunity to purchase it at a price and on terms that are a bona fide offer of sale (the Tenant Opportunity to Purchase Act, or TOPA); the Tenant Bill of Rights explains that for single-family homes all tenants get notice of the intended sale but only certain elderly or disabled tenants keep a right to buy, and that many exemptions apply. The sources reviewed do not set a security-deposit transfer rule for sales. D.C. Code § 42-3404.02; D.C. Office of the Tenant Advocate, D.C. Tenant Bill of Rights (Form OTA 2026.09.25) | Foreclosure or sale is not a ground for eviction. Under the Rental Housing Act, a tenant may be evicted only for the statutory reasons and only with the required notice, and may not be evicted while paying rent, even after the lease expires. A new owner, including a foreclosure buyer, takes the property subject to the tenancy. Before an owner sells a housing accommodation, or issues a notice to vacate for demolition or discontinuance of housing use, it must give tenants an opportunity to purchase (TOPA) on bona fide terms. Tenants also have a 15-day right of first refusal after receiving a third-party sales contract. D.C. Code § 42-3505.01(a)(1); § 42-3404.02(a); § 42-3404.08 |
| Florida | When a rental property is sold, the security deposit and any advance rent the landlord is holding, plus any interest earned, must be transferred to the new owner (or new rental agent) with an accounting of what is owed to each tenant. Once the old owner hands over the money and records and gets a written receipt, the old owner is released from the duty to hold the deposit. The law presumes the new owner received the deposit, but that presumption is limited to 1 month's rent. Fla. Stat. § 83.49(7) | Florida's own Protecting Tenants at Foreclosure Act (§ 83.5615) copies the federal PTFA: a 90-day notice to vacate, and bona fide leases are honored to the end of the term unless the buyer will live in the unit. But it takes effect only if the federal PTFA is repealed. Since the federal law is in force, the federal PTFA is what currently applies. No other Florida tenant foreclosure protection was found in ch. 83. Fla. Stat. § 83.5615 (ch. 2020-99) |
| Georgia | According to Georgia's official Landlord-Tenant Handbook, when a rental property is sold the former owner must either transfer the security deposit to the new owner, who then becomes responsible for it, or refund the deposit to the tenant. If the old owner does neither, the tenant can sue to recover the deposit. The handbook also says new owners of an apartment complex are generally bound by existing leases and cannot raise rents or change rules during them. Georgia Landlord-Tenant Handbook (Dept. of Community Affairs, rev. 8-29-24), pp. 13-14 | Not verified yet |
| Hawaii | When a landlord sells or otherwise transfers a rental, the buyer becomes liable under the existing rental agreement and the Landlord-Tenant Code. The original landlord must give the new owner an accounting of the security deposits, and the new owner must notify each tenant in writing within 20 days of the deposit amount credited to that tenant. If the new owner fails to do so, the tenant is presumed to have paid a deposit of at least one month's rent at the rate charged when the tenant first moved in. HRS §§ 521-44(f), 521-45(a)-(b) | Not verified yet |
| Idaho | If a rental changes ownership during a tenancy, the new owner is liable for refunding the security deposits paid on it. A buyer of rented property gets the same rights to collect rent and enforce the lease that the seller had, and a tenant has the same remedies against the buyer for breach of the lease that the tenant had against the original landlord (except on covenants about title, encumbrances or possession). Idaho Code §§ 6-321(3), 55-301, 55-303 | 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) |
| Indiana | Not verified yet | Not verified yet |
| 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 |
| Kansas | Unless otherwise agreed, a landlord who sells rental property in good faith to a bona fide buyer is released from liability under the lease for events after the landlord gives the tenant written notice of the sale. The selling landlord still remains liable to the tenant for any part of the security deposit the tenant is owed. Whoever holds the landlord's interest when the tenancy ends is bound by the security deposit rules. K.S.A. 58-2554(a), 58-2550(f) | Not verified yet |
| Kentucky | When a landlord sells or transfers the property, the tenant does not have to 'attorn' (formally accept the new owner) for the transfer to be valid, and a tenant who pays rent to the old owner before getting notice of the sale is not penalized for it (KRS 383.100(2)). In areas that have adopted Kentucky's landlord-tenant act, the landlord must give the tenant in writing the name and address of the manager and of the owner or owner's agent for notices, must keep that information current, and the duty extends to any successor landlord or owner (KRS 383.585). Kentucky's security-deposit statute (KRS 383.580) does not say who must hold or return the deposit after a sale. KRS 383.100(2); KRS 383.585; KRS 383.580 | Not verified yet |
| Louisiana | Selling the rental does not end the lease (Civil Code art. 2711). The buyer does not automatically take over the old landlord's rights and duties under the lease unless the buyer assumes them, and the tenant can sue the old landlord for any loss caused by the transfer (arts. 2711-2712). For the security deposit, when the landlord's interest is transferred during the lease, the old landlord must transfer the deposit to the new owner and is then released; the new owner is responsible for returning it at the end of the lease (R.S. 9:3251(B)). La. C.C. arts. 2711, 2712; La. R.S. 9:3251(B) | No state tenant-specific foreclosure protection was found. Under the Civil Code, a lessor's transfer does not end the lease between lessor and tenant, but a third person who acquires an immovable subject to an UNRECORDED lease is not bound by it. The tenant's remedy is a damages claim against the old landlord (unless the lease says otherwise). A lease has effect against third persons only once filed for registry. Federal PTFA 90-day notice protections apply separately in foreclosures. La. C.C. arts. 2711, 2712, 2681.1 (as revised by Acts 2026, No. 240, eff. Aug. 1, 2026) |
| Maine | When a landlord's interest ends by sale (or by assignment, death, receivership or otherwise), whoever holds the security deposits must either return them to the tenants (less lawful deductions) or give the new owner an accounting of each deposit and transfer the money, and mail each tenant notice of the transfer, the new owner's name and address, and a copy of the accounting. In a sale, the accounting and transfer must happen no later than the real estate closing, with written proof given to the buyer at closing. After compliance, the seller is released and the buyer holds the deposits with all of a landlord's duties. Separately, a buyer or assignee of the tenant's premises cannot bring an eviction against a tenant at will unless the tenant got a proper termination notice under 14 M.R.S. §6002 (§6001(2)). 14 M.R.S. §6035; 14 M.R.S. §6001(2) | A bona fide tenancy in a building in foreclosure, or with a foreclosure judgment, can be ended only under the federal Protecting Tenants at Foreclosure Act (Maine incorporates PTFA protections into state law). After an ordinary sale, a new owner cannot evict a tenant at will unless the tenant received a proper § 6002 termination notice from the old or new owner. 14 M.R.S. § 6001(1-A), (2) |
| Maryland | If the landlord sells or transfers the rental (including in receivership or bankruptcy), the landlord or the landlord's estate stays liable to the tenant and the buyer for any part of the security deposit (and required interest) that the landlord does not hand over to the new owner along with an accounting showing the amount and date of the deposit, interest-rate records, and the tenant's name and last known address. Any successor owner is liable to the tenant for failing to return the deposit with interest. If the tenant used a surety bond instead of a deposit, the new landlord must accept the bond and may not demand an additional deposit during the current lease term. Md. Code, Real Prop. §8-203(d)(3)-(4), (i)(11) | Maryland adopts PTFA-style protections. A foreclosure buyer takes the property subject to bona fide tenants' rights and must give a 90-day notice to vacate, sent by first-class AND certified mail, return receipt requested, stating its date, the effective date and the basis. A bona fide lease generally continues to its end, unless the buyer will live there as a primary residence (then 90 days). Longer state or local protections still apply. A landlord who has received a notice of intent to foreclose may end month-to-month tenancies with 30 days' notice (60 days for year-to-year). Md. Code, Real Prop. § 7-105.8(a)-(b); § 8-402(c)(4)(ii) |
| Massachusetts | A tenancy at will in a home is not ended by the owner's sale, transfer or lease of the property, or by foreclosure (G.L. c. 186, §13). When a landlord holding a security deposit transfers the property by sale, assignment, death, receivership or otherwise, the landlord must transfer the deposit plus accrued interest to the successor, who then becomes liable for holding and returning it. Within 45 days of the transfer, the successor must notify the tenant in writing that it holds the deposit, with names, business addresses and phone numbers. If the old landlord fails to transfer the deposit, the successor still owes it to the tenant; a successor may satisfy that duty for a tenant still in the unit by giving rent-free occupancy equal to the deposit amount (c. 186, §15B(5)). G.L. c. 186, §13; G.L. c. 186, §15B(5) | Strong state protections. A foreclosing owner (lender or its affiliate) may not evict a tenant except for just cause, or once there is a binding purchase-and-sale agreement with a bona fide third-party buyer. Within 30 days of foreclosure, the owner must post notice in the building, mail it to each unit, and slide it under each unit's door, giving the owner and manager contact information and where to send rent, plus a written notice of the right to a court hearing. Evictions for nonpayment, uncured violations, or refusing a lease renewal can't start until 30 days after that notice. A tenancy at will is not ended by sale, transfer or foreclosure. M.G.L. c. 186A, §§ 2, 3, 4; c. 186, § 13 |
| Michigan | When a landlord's interest in a rental unit ends by sale, assignment, death, receivership or otherwise, the landlord (or agent) stays liable for the security deposit until one of these happens: the deposit is transferred to the new owner and the tenant is notified by ordinary mail of the transfer and the new owner's name and address; the new owner complies with the deposit-security requirements of the act (section 4); or the deposit is returned to the tenant. MCL 554.614 | No Michigan statute grants tenants special notice beyond eviction law. After a foreclosure sale, the occupant can be removed by summary proceedings only once the redemption period ends, which is usually 6 months for 1-4 unit homes (1 month or 30 days if abandoned; 1 year in some cases). During redemption, the buyer may inspect on 72 hours' notice. Federal PTFA 90-day notice protections apply separately. MCL 600.5714(1)(g); MCL 600.3240(7)-(12); MCL 600.3238 |
| 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 |
| Mississippi | Mississippi's security deposit law says the deposit is held by the landlord for the tenant and the balance must be returned within 45 days after the tenancy ends; it makes the 'landlord or his transferee' liable for damages for keeping a deposit in violation of the section. The section does not spell out how a deposit must be handed over when the property is sold or what notice the tenant gets. Miss. Code Ann. §89-8-21(2)-(4) | Not verified yet |
| 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 |
| Montana | When a landlord sells a rental in a good-faith sale to a genuine buyer, the selling landlord is released from liability under the rental agreement and the Residential Landlord and Tenant Act only for events after the tenant gets written notice of the sale, unless otherwise agreed. The selling landlord stays liable to the tenant for all recoverable security deposit money and all prepaid rent. Mont. Code Ann. § 70-24-304(1) | No Montana statute protects tenants in foreclosure beyond federal law (federal PTFA applies). On a good-faith sale, the selling landlord is released from future duties only after written notice of the sale to the tenant, but stays liable for the security deposit and prepaid rent. The duty to disclose the owner and manager applies to any successor landlord. Mont. Code Ann. §§ 70-24-304, 70-24-301(2) |
| 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) |
| Nevada | Yes, the lease continues. Unless the new owner and tenant agree otherwise, a new owner after a voluntary sale takes on the previous landlord's rights, obligations, and liabilities under the existing rental agreement, and the tenant keeps theirs. The new owner must notify the tenant within 30 days of the sale where to pay rent, that the lease continues, and how much deposit the new owner holds. The selling landlord must, within a reasonable time, either tell the tenant in writing who the successor is and that the deposit balance was transferred, or return the deposit balance to the tenant; before recording the deed, the seller must transfer the deposit to the buyer in writing or notify the buyer in writing that it was returned. NRS 118A.349, 118A.244 | Before renting, a landlord must disclose in writing if the property is in foreclosure; a willful violation is a deceptive trade practice. After a residential foreclosure sale, a tenant in possession (not the borrower) can be removed only after notice of the change of ownership. The notice period is at least 60 days for month-to-month or longer periodic tenancies and at-will tenancies, or one full rental period for periods under 1 month. During that period the lease continues, the new owner takes on the old landlord's ch. 118A duties, and the notice must say where to pay rent. NRS 118A.275; NRS 40.255(2)-(5) |
| New Hampshire | When a landlord sells the building, the landlord must turn the security deposit over to the buyer (grantee) at the time the deed is delivered or within 5 days afterward, and must notify the tenant by registered or certified mail, giving the name and address of the new holder of the deposit. A landlord who turns over the deposit with any interest due is relieved of liability for repaying it; the buyer then becomes responsible for returning the deposit to the tenant. RSA 540-A:6, III | A purchaser at a foreclosure sale may recover possession only through the regular possessory (eviction) action after a written notice to quit (RSA 540:12). Good-cause eviction rules continue to protect tenants of restricted property after foreclosure, except single-family houses taken by banks or mortgagees through foreclosure, which are exempt (RSA 540:1-a, I(d)). When property is sold or foreclosed, the landlord must turn the security deposit over to the buyer, receiver, or foreclosure purchaser within 5 days (RSA 540-A:6, III). RSA 540:12; RSA 540:1-a, I(d); RSA 540-A:6, III |
| New Jersey | A tenant protected by the Anti-Eviction Act may not be removed by the landlord's successor in ownership except for good cause (or in narrow federal-law or government-enforcement cases). The buyer must obtain the security deposits and accrued interest from the seller; whether or not they are transferred, the buyer becomes responsible for investing the deposit, giving the required notices, paying interest, and returning the deposit with interest. A seller who turns the deposit and the tenant's share of interest over to the buyer is released from liability for repaying it. N.J.S.A. 2A:18-61.3(b); N.J.S.A. 46:8-21 | Foreclosure alone is not grounds to evict. The Anti-Eviction Act's good-cause rules bind the new owner. Within 10 business days after taking title through a sheriff's sale or deed in lieu, the new owner must give tenants a notice in English and Spanish. The notice says where to pay rent, that the tenant is protected by the Anti-Eviction Act, and gives the new owner's contact information. In buildings of 10 or fewer units, it must be posted on each unit door and sent by certified and regular mail. The foreclosing party and new owner may not pressure tenants to leave (except by a bona fide cash-for-keys offer, with a 5-business-day review period). Violations bring $2,000 per violation or other civil remedies at the tenant's choice. N.J.S.A. 2A:50-70, 2A:50-71 (P.L.2009, c.296) |
| New Mexico | Unless otherwise agreed, when the owner's interest in the rental ends by sale (or assignment, death, bankruptcy, receivership, or otherwise), the selling owner is released from liability under the rental agreement and the Uniform Owner-Resident Relations Act for events after the resident receives written notice of the change. The successor in interest becomes liable for all obligations under the rental agreement and the Act. After the resident gets written notice, future rent is paid to the successor. NMSA 1978, § 47-8-21(A) | No New Mexico statute protects residents in foreclosure beyond federal law (federal PTFA applies). When the owner's interest ends (by sale, receivership or otherwise), the successor owner is liable for all obligations under the rental agreement and the Act. After written notice of the change, the resident pays future rent to the successor. NMSA 1978, § 47-8-21 |
| New York | When a landlord sells the property (or assigns the lease), whoever holds the tenant's security deposit must turn it over to the buyer at delivery of the deed or within five days afterward, and notify the tenant by registered or certified mail with the buyer's name and address. Once the deposit is turned over, the seller is released from liability for repaying it and the buyer becomes responsible for returning it. Failing to comply is a misdemeanor. N.Y. Gen. Oblig. Law § 7-105 | After foreclosure, a tenant in a unit that is not rent-controlled or rent-stabilized may stay for the longest of: (a) 90 days after the required notice; (b) the rest of the lease, if the tenant lived there when the foreclosure began or got the RPAPL 1303 notice; or (c) the rest of a good-faith, roughly market-rate lease, up to 3 years. The tenancy continues on the existing terms. The new owner must give every tenant written notice of these rights and of its name and address. A successor who will live in the property as a primary residence may limit one unit to 90 days. Rent-regulated and subsidized tenants keep their rights under other law. RPAPL 1305(2)-(5); RPAPL 1303 |
| North Carolina | When the landlord's interest ends by sale (or assignment, death, receivership, or otherwise), the landlord or agent must, within 30 days, either transfer the remaining security deposit to the successor and then notify the tenant by mail of the transfer and the new holder's name and address, or return the remaining deposit to the tenant. Either step relieves the former landlord of further liability for the deposit. A buyer of the property (grantee of the reversion) has the same remedies against the tenants under the lease as the seller had, and tenants have the same remedies against the buyer. N.C. Gen. Stat. §§ 42-54, 42-8 | For residential property with fewer than 15 rental units, the foreclosure notice of sale must be mailed to each tenant (by name, or to 'occupant') at least 20 days before the sale. It must tell tenants they may end their lease by written notice effective 10 to 90 days after the sale date, if the default is not cured. A tenant who ends the lease this way owes only prorated rent. After the sale, the purchaser can get a clerk's order for possession only after 10 days' notice to those in possession, or 30 days for properties with 15 or more rental units. When the landlord's interest ends, the deposit must be transferred to the successor (with notice to the tenant) or returned within 30 days. N.C. Gen. Stat. §§ 45-21.17(4), 45-21.16A(b), 42-45.2, 45-21.29(k)(5), 42-54 |
| North Dakota | When a landlord sells the rental, the security deposit and any interest it has earned must be transferred to the buyer, and the seller stays liable for the deposit until it is transferred. Whoever owns the landlord's interest when the lease ends is bound by the deposit-return rules even if that owner never received the deposit. A buyer of property subject to a lease gets the same remedies for rent and lease breaches that the seller had, and a tenant has the same remedies against the landlord's successors (assigns) that the tenant had against the original landlord. N.D.C.C. §§ 47-16-07.1(5), 47-16-28, 47-16-29 | No statute — North Dakota adds no tenant protections beyond the federal PTFA. After a foreclosure sale and the end of the redemption period, the buyer may evict the occupant under the eviction chapter. N.D.C.C. § 47-32-01(5); chs. 47-16, 47-32 checked |
| Ohio | Ohio has no state law in its landlord-tenant chapter that requires a selling landlord to transfer the security deposit to the buyer or to notify tenants of the sale. The chapter does provide that an assignment or conveyance of the landlord's interest in a rental agreement cannot allow anyone to collect rent free of the landlord's duties to keep the unit fit and habitable. Every written lease must give the owner's name and address (and the agent's, if any). Ohio Rev. Code ch. 5321 (reviewed); §§ 5321.13(E), 5321.18 | No statute — Ohio Rev. Code chs. 5321 and 1923 add no tenant protections in foreclosure or sale beyond the federal PTFA. Ohio Rev. Code chs. 1923, 5321 checked |
| Oklahoma | A landlord can sell the rental without the tenant's agreement (attornment). Rent the tenant pays to the old owner before getting written notice of the sale counts against the buyer. Once the tenant gets written notice that the owner's interest has ended (by sale, assignment, death or otherwise), the tenant pays future rent to the new owner; the old owner is released from obligations for later events, and the successor owner is liable for all obligations under the rental agreement and the Residential Landlord and Tenant Act. 41 O.S. §§ 114, 119(A), (C) | No foreclosure-specific statute. The Act's general rule for any end of the owner's interest (sale, assignment, death, bankruptcy, receivership or otherwise) applies: rent paid to the old owner before the tenant gets written notice of the transfer counts against the new owner; after written notice, the tenant pays future rent to the successor, who is liable for the landlord's obligations under the rental agreement and the Act (§ 119). Alienees of landlords have the same rights and duties as the landlord (§ 114). The federal Protecting Tenants at Foreclosure Act also applies (90-day notice; existing leases honored with limited exceptions). 41 O.S. §§ 114, 119; 12 U.S.C. § 5220 note (PTFA) |
| Oregon | Oregon has no state law in its Residential Landlord and Tenant Act that requires a selling landlord to transfer the security deposit to the buyer. The landlord's duty to disclose in writing who manages the property and who receives notices for the owner must be kept current and is enforceable against any successor landlord or owner. If the landlord has accepted an offer from a buyer who intends in good faith to live in the unit, a month-to-month tenancy (or a fixed term at or after its end) can be ended with at least 90 days' written notice stating the reason, and the landlord generally must pay the tenant one month's rent at the time of the notice (exemptions are in ORS 90.427(6)(b)). ORS ch. 90 (reviewed); ORS 90.305(2), 90.427(5)(a)(D), (6) | A tenant who gets actual notice of a foreclosure may apply the security deposit or prepaid rent toward rent and cannot be evicted for doing so. A fixed-term tenant may end the lease with at least 60 days' written notice. For buildings with 4 or fewer units, failure to disclose a pending foreclosure before signing lets a tenant who must move recover twice actual damages or twice the monthly rent, plus prepaid rent. After a trustee's sale, the buyer must give a bona fide tenant written notice: at least 60 days for a fixed-term tenant (30 days if the buyer will live in the unit), and 30 days for month-to-month or week-to-week tenants. The buyer must then use the court eviction process. If the buyer accepts rent or gives no move-out notice within 30 days of the sale, the buyer becomes the landlord. ORS 90.367, 90.310, 86.782(6)-(10) |
| Pennsylvania | Anyone who buys rental property takes on the same duties, and gets the same rights and remedies, as the seller had (Landlord and Tenant Act § 104). Pennsylvania has no state law in the Landlord and Tenant Act of 1951 that sets a specific procedure for the seller to transfer the security deposit to the buyer or to notify tenants of the sale. Landlord and Tenant Act of 1951 § 104; Act reviewed | No state statute found — the Landlord and Tenant Act of 1951 has no foreclosure or sale protections for tenants beyond the federal PTFA. Landlord and Tenant Act of 1951 checked |
| Rhode Island | A landlord who sells to a good-faith buyer is released from liability for events after the tenant receives written notice of the sale, which must give the buyer's name, address and phone number and certify compliance with the housing-code disclosure law (§ 45-24.3-17). The sale does not affect the tenant's rights under an existing lease, and a buyer of a building with four or fewer units takes title with the same rights and responsibilities toward the tenant as the seller. Whoever holds the landlord's interest when the tenancy ends is bound by the security-deposit return rules. R.I. Gen. Laws §§ 34-18-23, 34-18-19(g) | For buildings with 4 or fewer units, a 'foreclosing owner' (the lender or its affiliate, an institutional mortgagee holding title within 3 years, or Fannie Mae or Freddie Mac) may not evict a bona fide tenant except for just cause, or when a binding sale to a bona fide third-party buyer exists (with disclosure), or under certain HUD/FHA occupied-conveyance rules. Within 30 days of foreclosure, the owner must post, mail, and slide under the door a notice with its contact information, the address for paying rent, and a continued-occupancy form. Eviction for cause cannot start until 30 days after that notice. Separately, a landlord 120 days delinquent on the mortgage must tell tenants the property may be foreclosed; tenants must keep paying rent until foreclosure. R.I. Gen. Laws §§ 34-18-38.1, 34-18-38.2, 34-18-20(d) |
| South Carolina | A landlord who sells to a good-faith buyer is released from liability for events after the tenant receives written notice of the sale. The seller stays liable for the tenant's security deposit unless the deposit is transferred to the buyer and the tenant is notified in writing within a reasonable time, in which case the buyer becomes liable for it. Whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules, and the owner/manager contact disclosure must be kept current by any successor landlord or owner. S.C. Code §§ 27-40-450(a), 27-40-410(e), 27-40-420(b) | No statute — South Carolina's landlord-tenant and ejectment chapters add no tenant protections in foreclosure beyond the federal PTFA. If a landlord sells the property in good faith to a buyer who takes over the lease, the selling landlord is relieved of later liability. S.C. Code § 27-40-450; chs. 27-37, 27-40 checked |
| 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 |
| Tennessee | When a landlord sells a rental in good faith to an unrelated buyer, the seller stays responsible under the lease and the landlord-tenant law until the tenant gets written notice of the sale and the security deposit is transferred to the buyer. After both happen, the seller is released for later events, unless the parties agreed otherwise. The statute does not say the sale ends the lease. Tenn. Code Ann. § 66-28-305 | Not verified yet |
| Texas | When the owner's interest ends by sale (or assignment, death, receivership, bankruptcy or otherwise), the new owner becomes liable for returning security deposits from the date it takes title. The new owner must give the tenant a signed statement saying it has acquired the property, is responsible for the deposit, and stating the exact deposit amount. The former owner stays liable for a deposit it received until the new owner receives the deposit or assumes the liability, unless a written contract says otherwise. These rules do not apply to a mortgage lender that takes title by foreclosure. Tex. Prop. Code § 92.105 | If a building is bought at a tax foreclosure sale or trustee's foreclosure sale under a lien superior to the lease, and the residential tenant timely pays rent and is not otherwise in default, the purchaser must give at least 30 days' written notice to vacate if it chooses not to continue the lease. Rent is timely if, in the month of sale, the tenant paid the landlord before receiving notice that a sale was scheduled, or pays the lienholder/purchaser within 5 days after receiving written notice of the purchaser's name and address requesting payment. A foreclosing lienholder may notify tenants before the sale. A tenant who holds over after foreclosure is a tenant at sufferance. Tex. Prop. Code Sec. 24.005(b); 24.002(a)(2) |
| Utah | Whoever holds the owner's (or the owner's agent's) interest in the rental when the tenancy ends is bound by Utah's renter deposit law, so a buyer who owns the property at move-out is responsible for handling the deposit under that law. Utah's deposit and landlord-tenant statutes do not say whether a sale ends the lease and do not require the seller or buyer to notify the tenant of the sale. Utah Code § 57-17-4; Title 57 Ch. 17, Ch. 22 and Title 78B Ch. 6 Part 8 (reviewed) | Utah incorporates the federal PTFA: a bona fide tenant under PTFA Sec. 702 is in unlawful detainer only if the tenant stays after the effective date of a notice to vacate given in accordance with Sec. 702. A former owner/mortgagor who stays after a trustee's or sheriff's sale and a purchaser's notice to quit commits unlawful detainer. No additional state tenant protections found. Utah Code 78B-6-802 (PTFA bona fide tenancy subsection); 78B-6-802.5 |
| Vermont | When the landlord's interest in the unit ends (for example, by sale), the security deposit must be transferred to the new landlord, and the new landlord must give the tenant actual notice of the new landlord's name and address with a statement that the deposit has been transferred. If there is no written lease, a landlord who has contracted to sell the building may end the tenancy with at least 30 days' actual notice; the statute does not give that right when there is a written lease. 9 V.S.A. §§ 4461(f), 4467(d) | In a mortgage foreclosure of residential rental property, the foreclosing party must join as defendants the tenants occupying under a rental agreement when the complaint is recorded (service by first-class mail is sufficient), and the summons must carry a 14-point warning that the home is being foreclosed. On receiving the complaint, the owner must tell each NEW tenant that a foreclosure is pending and they may have to leave on 30 days' notice (or longer federal notice). After judgment, the writ of possession must be served on a residential tenant and the plaintiff cannot be put in possession until at least 30 days after service (or longer if federal law requires). On an ordinary sale with no written lease, a landlord who has contracted to sell may end the tenancy on 30 days' actual notice. 12 V.S.A. § 4932(c); 12 V.S.A. § 4941; 9 V.S.A. § 4467(d) |
| Virginia | When rental property is sold, the current owner must transfer all security deposits, plus any accrued interest, to the new owner at the time of transfer. If a managing agent holds the deposits, the owner must ask for them in writing before settlement, and the agent must transfer them and give each tenant written notice that the deposit went to the new owner. The landlord must also notify the tenant of the sale and give the buyer's name, address and phone number; these duties are enforceable against any successor landlord. Va. Code §§ 55.1-1213, 55.1-1216(B), (D) | Single-family rental: the landlord must tell the tenant or prospective tenant in writing within 5 business days after receiving a lender's notice of mortgage default, acceleration or foreclosure sale; if not, the tenant may terminate on 5 business days' written notice. After a foreclosure sale, a buyer who will occupy the unit as a primary residence must give at least 90 days' written notice to vacate; any other buyer takes subject to the lease and the tenant may stay for the remaining term (subject to termination for cause or under the lease), with written notice to the tenant. Rent goes to the successor owner as directed in writing, to the managing agent, or into court escrow; the tenant is not delinquent or charged late fees until the successor names where to pay. On any sale, the landlord must disclose the purchaser's name, address and phone number. Va. Code Sec. 55.1-1237; 55.1-1216(B) |
| Washington | If the landlord's role passes to someone else during the tenancy (for example, by sale), the security deposit money in the landlord's trust account must be moved at the same time to an equivalent trust account of the new landlord. The new landlord must promptly tell the tenant about the transfer and give the name, address and location of the new depository. If the unit is foreclosed on and the deposit is not passed to the successor, the former owner must refund the full deposit to the tenant right away or be liable for up to twice the deposit. RCW 59.18.270 | In a nonjudicial (deed of trust) foreclosure of tenant-occupied property, the trustee must post and mail a notice to the 'Resident of property subject to foreclosure sale' when posting the notice of trustee's sale, warning that the property may be sold in 90 days or more and the new owner may offer a new rental agreement or give a 60-day notice to vacate. A tenant or subtenant in possession when the property is sold in foreclosure must get at least 60 days' written notice to vacate before removal (eviction for waste or nuisance excepted); the rule does not apply to a borrower who stays on as a tenant. Separately, under just-cause eviction rules, an owner who elects to sell a single-family residence must give at least 90 days' written notice to end the tenancy. RCW 61.24.143; 61.24.146; 59.18.650(2)(e) |
| West Virginia | A sale does not cancel the lease: a tenant keeps the same rights under the lease's conditions, covenants and promises against the buyer that the tenant had against the original landlord, and the buyer gets the landlord's rights against the tenant. Whoever holds the landlord's interest when the tenancy ends must return any security deposit the original landlord received that is owed to the tenant, whether or not the deposit was actually transferred and regardless of any agreement between the seller and buyer. The statutes reviewed do not require a notice of sale to the tenant. W. Va. Code §§ 37-6-1, 37-6-2, 37-6A-2(e) | No state statute specifically protecting tenants in foreclosure was found; the federal PTFA (90-day notice; bona fide leases honored to term, with exceptions) applies. On a transfer of the property, the tenant keeps against the new owner the benefit of any condition, covenant or promise in the lease that it had against the original landlord (except warranty), and the new owner gets the landlord's rights under the lease. W. Va. Code §§ 37-6-1, 37-6-2 |
| 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) |
| Wyoming | Whoever holds the owner's (or designated agent's) interest in the rental when the rental agreement ends is bound by Wyoming's deposit rules, including returning the deposit balance with a written itemization of deductions. Wyoming's residential rental statutes do not say whether a sale ends the lease and do not require a notice of sale to the renter. W.S. 1-21-1209, 1-21-1208 | No state tenant-protection statute for foreclosures was found; the federal PTFA (90-day notice; bona fide leases honored) applies. State law lets a purchaser use forcible entry and detainer after a judicial foreclosure sale (against a judgment debtor in possession) or after a power-of-sale (nonjudicial) foreclosure once possession has been demanded. On a sale or transfer, the new holder of the owner's interest at the end of the tenancy is bound by the deposit-return rules. Wyo. Stat. § 1-21-1002(a)(ii)-(iii); § 1-21-1209 |
Landlord Selling the House: state-by-state guides
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.