Seller won't give up security deposits at sale

[Troy F.]

Hello,

I've purchased a few properties now and this is a first. We are 8 days from closing and the seller's realtor informed me that we would not be getting the security deposits as that was not written into the contract. I've been asking about the security deposits since prior to contract signing. I noticed the seller's realtor seemed to be sidestepping the question. I just thought he was busy and didn't have the details, so he hadn't responded. Today he finally laid out their intent. These are section 8 tenants. Those security deposits belong to the tenants, not the seller, or the buyer. Have you ever heard of a seller trying to keep the security deposits before?

Thanks,

[Jill F.]

check your state laws. Some state regulate what happens to a security deposit when a property transfers. It looks like iowa regulates the transfer:

https://ipropertymanagement.com/laws/sold-property-security-...

Even if you don't have specific language regarding the security deposits if the leases transfer I would expect the security deposits to transfer as part of the lease. I think the section 8 administrator would have something to say about it. Do they have a better offer? are they trying to derail the closing?