Cal. Civ. Code § 32-31-3-19
Sale of property; liability for deposits; exceptions
Operative Text
Sec. 19. (a) Unless otherwise agreed, if a landlord conveys, in a good faith sale to a bona fide purchaser, property that includes a dwelling unit subject to a rental agreement, the landlord is relieved of liability under law or the rental agreement as to events occurring after written notice to the tenant of the conveyance. However, for one (1) year after giving notice of the conveyance, the landlord remains liable to the tenant for the security deposit to which the tenant is entitled under section 14 of this chapter unless: (1) the purchaser acknowledges that the purchaser has assumed the liability of the seller by giving notice to the tenant; and (2) upon conveyance the seller transfers the security deposit to the purchaser. (b) Unless otherwise agreed, a manager of a dwelling unit is relieved of any liability the manager might have under law or the rental agreement as to events occurring after written notice to the tenant of the termination of the manager's management.
Under Indiana Code § 32-31-3-19, when a landlord sells rental property in a good-faith transaction, the landlord's legal obligations generally end once the tenant receives written notice of the sale — but security deposit liability is an exception. The selling landlord remains on the hook for the tenant's security deposit for one year after giving notice, unless the new owner formally acknowledges assuming that liability and the seller actually transfers the deposit funds to the buyer. Similarly, a property manager who stops managing a unit is relieved of ongoing obligations once the tenant receives written notice of the management change.
Plain English — not legal advice.
Landlords selling rental property under Indiana Code § 32-31-3-19 generally protect themselves from post-sale liability by providing tenants with prompt written notice of the conveyance. To fully transfer security deposit responsibility, compliant operators ensure that the purchaser sends the tenant written acknowledgment of assuming deposit liability and that the deposit funds are physically transferred to the new owner at closing. Without both steps, the selling landlord may remain exposed to security deposit claims for up to one year after the notice of sale.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Indiana Code § 32-31-3-19 preserves a tenant's right to their security deposit even after a property is sold — the original landlord can remain liable for up to one year unless specific transfer conditions are met. Tenants who receive a notice of sale or management change may want to document when that notice arrived and confirm in writing who now holds their deposit. If a deposit is withheld or disputed after a sale, tenant-rights organizations and Indiana's court system offer general enforcement paths, including raising the original landlord's continued liability as a basis for a claim.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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