Cal. Civ. Code § 55.1-1213
Transfer of deposits upon purchase.
Operative Text
The current owner of rental property shall transfer any security deposits and any accrued interest on the deposits in his possession to the new owner at the time of the transfer of the rental property. If the current owner has entered into a written property management agreement with a managing agent in accordance with the provisions of subsection E of § 54.1-2135 , the current owner shall give written notice to the managing agent requesting payment of such security deposits to the current owner prior to settlement with the new owner. Upon receipt of the written notice, the managing agent shall transfer the security deposits to the current owner and provide written notice to each tenant that his security deposit has been transferred to the new owner in accordance with this section.
Virginia Code § 55.1-1213 governs what happens to tenant security deposits when rental property changes hands. At the moment of sale or transfer, the current owner is required to pass along all security deposits—plus any accrued interest—to the incoming owner. When a property management company holds the deposits, the selling owner must formally request the funds in writing before closing, and the managing agent must then transfer the deposits and notify each affected tenant in writing that their deposit has moved to the new owner.
Plain English — not legal advice.
Under Va. Code § 55.1-1213, a compliant seller of rental property ensures that all security deposits and accrued interest are transferred to the buyer at or before settlement. If a managing agent holds the deposits, the selling owner sends a written request for those funds well in advance of the closing date so the agent has time to transfer them and issue written notices to tenants. Keeping clear records of the transfer—amounts, dates, and any written communications with the managing agent—supports a clean handoff and helps demonstrate compliance with the statute.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Va. Code § 55.1-1213 protects tenants by requiring that their security deposits follow the property when it is sold, rather than disappearing in the transaction. Tenants are entitled to receive written notice from the managing agent confirming that their deposit has been transferred to the new owner. If a tenant does not receive such notice or has concerns about the status of their deposit after a property sale, they may consider contacting a local tenant-rights organization or Virginia's consumer protection resources to understand available options.
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 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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