Oak Park Title 12 Residential Rental Licensing (Arts. 2, 4, 6) § 12-4-2
TRANSFEREE LIABILITY
Operative Text
In the event of a sale, lease, transfer or other direct or indirect disposition of residential real property, other than to the holder of a lien interest in such property, by a lessor who has received a security deposit or prepaid rent from a lessee, the transferee of such property shall be liable to that lessee for any security deposit, including statutory interest, or prepaid rent which the lessee has paid to the transferor. The transferor shall remain jointly and severally liable with the transferee to the lessee for such security deposit or prepaid rent. (Ord. 1990-0-9, 3-19-1990, eff. 6-1-1990; amd. Ord. 15-184, 11-2-2015, eff. 12-1-2015)
Under Oak Park Title 12 § 12-4-2, when a residential rental property changes hands through a sale, lease, transfer, or similar transaction, the new owner (transferee) becomes responsible to existing tenants for any security deposits and prepaid rent those tenants previously paid to the former owner (transferor). Importantly, the original owner does not escape responsibility — both the old and new owner are jointly and severally liable to the tenant for those funds. This rule does not apply when property is transferred to a lienholder, such as a mortgage lender taking possession through foreclosure.
Plain English — not legal advice.
Property owners and managers in Oak Park should be aware that § 12-4-2 creates automatic liability for security deposits and prepaid rent upon acquisition of a residential rental property, regardless of what the purchase agreement says between buyer and seller. Compliant operators typically account for all existing tenant deposits and prepaid rent at closing, ensure those funds are properly transferred or credited, and document the transaction clearly. Sellers who have held tenant deposits remain jointly and severally liable even after the transfer, so both parties have a strong operational interest in addressing these funds explicitly during the transaction.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Oak Park Title 12 § 12-4-2, tenants retain the right to recover their security deposits and prepaid rent even if the property they rent is sold or transferred to a new owner. Both the previous owner and the new owner are jointly and severally liable, meaning a tenant may seek the return of those funds from either party. Tenants who believe their deposit or prepaid rent has not been properly accounted for after a property transfer may wish to consult a tenant-rights organization or review Oak Park's residential rental licensing rules to understand available enforcement paths.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 10, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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