Tex. Prop. Code Ann. §§ 92.001–92.355 § 92.105
CESSATION OF OWNER'S INTEREST.
Operative Text
Sec. 92.105. CESSATION OF OWNER'S INTEREST. (a) If the owner's interest in the premises is terminated by sale, assignment, death, appointment of a receiver, bankruptcy, or otherwise, the new owner is liable for the return of security deposits according to this subchapter from the date title to the premises is acquired.(b) The new owner shall deliver to the tenant a signed statement acknowledging that the new owner has acquired the property and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit.(b-1) The person who no longer owns an interest in the rental premises is liable for a security deposit received while the person was the owner until the new owner has received the deposit or has assumed the liability for the deposit, unless otherwise specified by the parties in a written contract.(c) Subsection (a) does not apply to a real estate mortgage lienholder who acquires title by foreclosure. Acts 1983, 68th Leg., p. 3640, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 305, Sec. 2, eff. Aug. 26, 1985.Amended by: Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 5, eff. January 1, 2016.
Under Texas Property Code § 92.105, when ownership of a rental property changes hands—whether through a sale, assignment, death, receivership, bankruptcy, or other means—the incoming owner becomes responsible for returning tenants' security deposits from the date they acquire title. The outgoing owner remains on the hook for any deposits they collected until the new owner either physically receives those funds or formally assumes liability for them. A notable exception applies to mortgage lienholders who take title through foreclosure, who are not automatically bound by subsection (a).
Plain English — not legal advice.
Property owners and managers involved in a transfer of rental property should be aware that § 92.105 requires the new owner to deliver a signed written statement to each tenant acknowledging the ownership change, accepting responsibility for the security deposit, and stating the exact dollar amount held. Compliant operators typically ensure that security deposit funds are transferred or formally assumed as part of the closing process, and that tenant notification letters are issued promptly after title is acquired. Outgoing owners generally document the handoff in writing to establish when their liability ends and the new owner's begins.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 92.105, tenants have a right to receive a signed statement from a new property owner confirming the ownership change, the new owner's responsibility for the security deposit, and the exact amount on record. If a property changes hands and a tenant does not receive this acknowledgment, or if a deposit is later withheld improperly, tenants may have claims against either the former or current owner depending on whether the deposit was transferred. Tenants who believe their deposit rights have been violated can look into filing a complaint with a local tenant-rights organization, consulting a housing attorney, or pursuing a claim in Texas small claims court.
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 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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