Tex. Prop. Code Ann. §§ 94.001–94.303 § 94.106
CESSATION OF OWNER'S INTEREST.
Operative Text
Sec. 94.106. 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, regardless of whether notice is given to the tenant under Subsection (b).(b) The person who no longer owns an interest in the leased premises remains liable for a security deposit received while the person was the owner until the new owner delivers to the tenant a signed statement acknowledging that the new owner has received and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit.(c) Subsection (a) does not apply to a real estate mortgage lienholder who acquires title by foreclosure. Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Under Texas Property Code § 94.106, when ownership of a manufactured home community changes hands — whether through a sale, assignment, death, receivership, bankruptcy, or any other means — the incoming owner becomes responsible for returning tenants' security deposits from the moment title transfers. The outgoing owner does not automatically shed that responsibility; they remain on the hook until the new owner delivers a signed written statement to the tenant confirming receipt of the deposit and stating its exact dollar amount. One notable exception applies: a mortgage lienholder who takes title through foreclosure is not subject to the new-owner liability rule under subsection (a).
Plain English — not legal advice.
Operators acquiring a manufactured home community should be aware that § 94.106 makes them liable for existing tenant security deposits the moment title transfers, even if no written notice has yet been given to tenants. To shift liability away from the prior owner, the new owner must deliver a signed statement to each affected tenant that acknowledges receipt of the deposits and specifies the exact dollar amount of each. Outgoing owners who want to limit their ongoing exposure should ensure that this signed acknowledgment is delivered to tenants as part of the closing process.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 94.106, residents of manufactured home communities have security deposit protections that follow the property through ownership changes — meaning a new owner is responsible for returning your deposit from the date they acquire title. The previous owner remains liable until you receive a signed written statement from the new owner confirming they hold your deposit and stating the exact amount. If you have not received such a statement after an ownership change, tenant-rights organizations or a local legal aid office can help you understand the options available to you, including how this provision might apply to a dispute over your deposit.
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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