Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago, 09/15/2017

User Stats

35
Posts
21
Votes
Renard Miller
  • Investor
  • Hampton Roads, VA
21
Votes |
35
Posts

Seller Never Collected Security Deposits

Renard Miller
  • Investor
  • Hampton Roads, VA
Posted

I am in the final stages of purchasing a fourplex in Virginia and wanted to see if others had any thoughts on what my options are. In the future, this will be a question I add to my diligence checklist, but in this instance, is it reasonable to ask the seller to make a purchase price concession to account for the missing security deposits? The seller simply did not collect security deposits for three of the four units and did not mention this fact at any point up until now. 

As security deposits are the tenants money, it is not necessarily a perfect solution to ask the seller to cover these amounts, but it also creates great risk on my end if there are no security deposits in place. 

As I see things, my options are: (i) eat the cost; (ii) have seller adjust the purchase price down by some agreed upon amount; (iii) have seller write a check for the missing security deposits; or (iv) have inherited tenants pay a security deposit when we take over the property. None of these seem perfect, but I am wonder if there are reasons one might make significantly more sense than the others. 

Would love to hear any thoughts on the matter. Thanks in advance!

Loading replies...