Security deposits held in escrow

[Steve Boianelli]

I’m selling my portfolio and a few properties have no security deposit because funds were used to correct tenant caused issues. Title company holding said funds in escrow. Anyway I can get around this?

[Cassi Justiz]

It's going to probably depend on your state regulations. I manage my properties in Oklahoma, and our Landlord Tenant act specifies that you security deposits can be used upon termination of the tenancy to correct any damages, but my understanding is that you are not able to utilize them for any reason until that point. It also specifies what actions a landlord must take to use the funds from the security deposit. 

I would look into your landlord tenant act to see if that gives you any guidance. If your state allows you to utilize the deposits in that way and you have the required documents to support it, then you should be able to submit those to the title company.