Security Deposit Liability in Texas

Who is liable for security and pet deposits when a Landlord acquires a new investment property where tenants are already in place? The Texas Property Code states that a new property owner is: (1) liable for these deposits when they acquire the property, (2) required to deliver to the tenant a signed statement acknowledging that the new owner has acquired the property and is responsible for these deposits, and (3) required to specify the exact amount of the security deposit received in the signed statement.

What about the seller? The property code states that the seller remains liable for the security deposit until the new owner has received the deposit or the new owner has assumed liability for the deposit. A seller’s best practice is to include this notice with the title transfer documents and the seller should ensure that it is delivered to the tenants.