What happens to the tenant's security deposit at closing?

A tenant's security deposit transfers to the new owner at closing, since Georgia law treats the deposit as tied to the lease and property rather than to the selling landlord personally, and the seller must turn over the deposit and any required accounting to the buyer as part of the sale. The buyer then becomes responsible for returning it to the tenant under the same rules that applied to the seller. This transfer is typically documented in the closing paperwork the attorney prepares. Joel Boss makes sure a deposit transfer is addressed directly in any contract involving a tenanted property.