Leases and security deposits when you sell
A sale doesn't cancel a lease. The new owner steps into your shoes as landlord, under the same rent and term, until the lease ends. Month-to-month tenants also stay unless proper notice is given under state law.
Security deposits move with the house. Michigan's security deposit law and Ohio's landlord-tenant law both expect the deposits to be handled properly when a rental changes hands, including notice to tenants. In practice, the deposits are credited to the buyer on the closing statement, and tenants are told who holds them now.
Sources: Michigan Security Deposit Act (MCL 554.601 et seq.); Ohio Revised Code chapter 5321.




