CTO FORM LETTERS
FL 3.4: PROPERTY SOLD, RETURN SECURITY DEPOSIT

EXPLANATION

ORC 5321.16(B):
Obligates the landlord to return the security deposit and/or a written itemization of any deductions from the security deposit within thirty (30) days of the termination of a rental agreement. Common practice in the real estate industry is that when rental property is sold, security deposits are placed in an escrow account and transferred to the new owner. If the new owner does not receive the security deposits, the previous owner is still liable to the tenant for the orginal security deposit paid.

When property is sold, the new owner buys the property subject to all rental agreements, written or oral, already in place. Although the relationship with the first landlord is terminated, the rental agreement does not terminate. The original landlord owes the tenant the return of his/her security deposit if it does not transfer with the property because the relationship between the original property owner and the tenant has terminated.

ORC 5321.16(B) also states that:
The tenant shall provide the landlord written notice of the address to which the security deposit is to be sent. If the landlord does not return the security deposit within 30 days, or the tenant disagrees with the amount returned, the tenant may sue for twice the amount wrongfully withheld.

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