Cal. Civ. Code § 1.2
Security deposit transfer. Notwithstanding Section 1.1, when a lessor transfers actual possession of a security deposit received from a lessee, including any statutory interest that has not been paid to a lessee, to a holder of the certificate of sale or deed issued pursuant to that certificate or, if no certificate or deed was issued, the purchaser of a foreclosed property under Article XV of the Code of Civil Procedure, the holder or purchaser shall be liable to a lessee for the transferred security deposit, including any statutory interest that has not been paid to the lessee, as provided in this Act. Within 21 days after the transfer of the security deposits and receipt of the name and address of any lessee who paid a deposit, the holder or purchaser shall post a written notice on the primary entrance of each dwelling unit at the property with respect to which the holder or purchaser has acquired actual possession of a security deposit. The written notice shall state that the holder or purchaser has acquired the security deposit paid by the lessee in connection with the lessee's rental of that dwelling unit
Operative Text
Security deposit transfer. Notwithstanding Section 1.1, when a lessor transfers actual possession of a security deposit received from a lessee, including any statutory interest that has not been paid to a lessee, to a holder of the certificate of sale or deed issued pursuant to that certificate or, if no certificate or deed was issued, the purchaser of a foreclosed property under Article XV of the Code of Civil Procedure, the holder or purchaser shall be liable to a lessee for the transferred security deposit, including any statutory interest that has not been paid to the lessee, as provided in this Act. Within 21 days after the transfer of the security deposits and receipt of the name and address of any lessee who paid a deposit, the holder or purchaser shall post a written notice on the primary entrance of each dwelling unit at the property with respect to which the holder or purchaser has acquired actual possession of a security deposit. The written notice shall state that the holder or purchaser has acquired the security deposit paid by the lessee in connection with the lessee's rental of that dwelling unit.
Under 765 Ill. Comp. Stat. 710 § 1.2, when a property changes hands through foreclosure and the original landlord transfers a tenant's security deposit to the new owner or certificate holder, that new owner assumes full legal responsibility for the deposit — including any unpaid statutory interest. The new owner must post a written notice on the primary entrance of each affected dwelling unit within 21 days of receiving the deposit and the tenant's contact information. That notice must inform the tenant that the new owner now holds the security deposit associated with their rental unit.
Plain English — not legal advice.
A new owner or certificate holder who acquires a security deposit through a foreclosure transfer under 765 Ill. Comp. Stat. 710 § 1.2 takes on the same obligations toward tenants that the original landlord held. Compliant operators track the 21-day clock carefully from the moment they receive both the transferred deposit and the tenant's name and address, then post the required written notice at each unit's primary entrance before that deadline. Maintaining clear records of the transfer date, deposit amounts, accrued statutory interest, and notice posting helps demonstrate compliance with the Act's requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 765 Ill. Comp. Stat. 710 § 1.2, tenants whose security deposits are transferred during a foreclosure retain their full rights to those deposits — including any statutory interest that has not yet been paid — from the new owner or certificate holder. If a tenant does not receive the required written notice posted at their unit's primary entrance within 21 days of the transfer, that may constitute a violation of the Act that can be raised in a legal proceeding or complaint. Tenants in this situation may wish to consult a tenant-rights organization or legal aid provider to understand the remedies available under Illinois law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.