Buying occupied units question

[Alan Bostick]

I have not heard in podcasts or read in any book yet about this topic. Is it customary/required to have tenants security deposit transferred to buyer at sale or is the buyer responsibility to provide that when the tenant moves? 

[Steven Goldman]

Each State has their own laws regarding the escrowing of security deposits. @JackWiley is correct that best practice is to escrow your security deposits in a interest bearing account. While it is customary for security deposits to transfer  when you are buying an occupied residential property, your contract should state that the seller will transfer all security deposits at time of settlement. Good luck!