Tenant's Security Deposits - Credit Wasn't Applied

[Luis Fernandez]

I purchased in four-plex and was given a contract with an inspection rider and then the real estate agent changed broker and had me sign a mutual release and then a new contract. I skimmed through the new contract and it looked just like the last one. After we closed, an existing tenant asked about her security deposit. The former owner had not refunded the security deposit to the tenants nor did I get credit for it on HUD statement. I reviewed the latest contract and noticed that Rider Inspection was missing. I asked the real estate agent why she had placed it on the original contract and not on the latest one? Her response was that because I already had inspected the property during the first contract an so she decided, without telling me, to omit the Rider Inspection from the latest contract. Is she or her broker liable for not having including the Rider Inspection with the latest contract which wasn't in the best interest on their client(me)? The tenants (there's more than one) will eventually ask for her security deposit when they move out and I have not been given credit for this.

[Jonna Weber]

Hi Luis!  Sorry to hear the frustration.  As an agent, I always make sure that the security deposits are credited to the buyer at closing...as it is challenging to collect after.  I learned the hard way.  Was the property under professional management?  If so, I would be contacting them directly to find out who is holding the deposits.  Even if it was owner managed, I would be having my agent contact the seller or sellers agent right away.  The longer you wait...the more challenging it will be to collect. Hopefully you received copies of the leases, and that you were blessed with good inherited tenants. I really hope it works out smoothly for you!