Is a property management company required to immediately return our deposit once the home we’re renting is foreclosed on?
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Is a property management company required to immediately return our deposit once the home we’re renting is foreclosed on?
As tenant, we were notified of the final summary judgement of foreclosure against the owner of the property. We are on a month-to-month lease through a property management company. The bank will put the property up for auction in about 6 weeks. So, are we only required to pay partial rent for the month? And, after it is sold, is the property management company required to refund our full security deposit right away?
Asked on January 19, 2012 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you placed a security deposit for the home that you are renting and the home is then foreclosed upon, the new owner of record (your new landlord) is supposed to receive the security deposit you placed from the property management company assuming it had possession of the secuirty deposit that you are writing about or from the landlord who actually received the deposit.
You are required to continue making full payments under your lease to the person stated in the agreement unless you receive a court order stating otherwise or if the lending institution which is foreclosing on the property tells you to pay it.
As to receiving the return of your security deposit, you are to receive it upon so many days per statute when you move out. However, if the owner of the property being foreclosed upon has your security deposit, I would contact him or her about returning it to you now in that he has no use for it if he loses the home in foreclosure.
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