If a property is sold by the lessor during the lease term, to whom should the deposit be turned over?

When a property is sold during the lease term, the security deposit that the tenant has paid is typically transferred to the new owner or purchaser of the property. This is because the purchaser essentially acquires not only the property but also the obligations attached to it, which includes the responsibilities associated with the lease agreement and the handling of any deposits made by tenants.

The rationale behind this transfer is that the security deposit exists to protect the landlord or property owner against potential damages or unpaid rent during the tenancy. Since the purchaser becomes the new landlord, they inherit any existing leases and are required to uphold the terms outlined in those agreements, including the management of the security deposit.

In this context, returning the deposit directly to the original lessor or to the tenant would not satisfy the legal responsibilities outlined in most lease agreements, as the new owner must now honor the deposit made by the tenant during their lease term. Therefore, turning over the deposit to the purchaser is the appropriate course of action.