Old Tenant New Deposit?

[Cori Nicole McCorkle]

We are closing on a duplex on 8/6 in Austin, TX and there is a tenant in place who wants to stay. He paid a deposit to the seller 3 years ago. We did not think to include this deposit in our negotiations with the seller and our tenant inquired about how his $1500 deposit will transfer. Can we ask the seller to refund it to the tenant? (our seller is an out of state investor who we have little communication with). Does the deposit typically transfer to the new buyer in the form of a closing credit? This is our first multi-family deal and our first tenant absorption. Thanks for the advice!

[David Ivy]

@Cori Nicole McCorkle

If you are using the standard TREC 1-4 family residential contract, then transfer of the security deposit is already handled in Section 9B(5).