When a rental property is sold in Missouri, the security deposit situation must be handled carefully. Under Mo. Rev. Stat. § 535.300, both the original Landlord and the new owner may carry liability if the security deposit is not properly transferred and documented at closing.

At the real estate closing, the seller (original Landlord) should:

The new owner takes the property subject to existing leases and becomes responsible for the security deposits from the date of transfer. If the new owner fails to return the deposit within 30 days after the tenancy ends — or improperly withholds it — the new owner is exposed to the 2x penalty under § 535.300(5), regardless of what happened before the sale.

🚩 Don't assume the prior owner's failure to transfer the deposit is the Tenant's problem. As the new owner, you are on the hook — sort it out at closing.

If you purchased the property and the security deposit was not transferred at closing:

Does Missouri require a posted written notice to Tenants when the property is sold?

Missouri's § 535.300 does not contain a specific posted-notice requirement when a property changes hands. However, written notice to the Tenant of the ownership change and deposit transfer is strongly recommended as a matter of best practice and documentation.

Is the old owner still liable after the sale?

Potentially, yes. Until the security deposit is formally transferred and the Tenant is properly notified, Missouri courts may find both the original Landlord and the new owner jointly liable. Handle the transfer cleanly at closing.

Security Deposit — Mo. Rev. Stat. § 535.300

⚖️ Disclaimer — This article is for general informational purposes only and should not be considered legal advice or a legal opinion on any specific case or situation. It does not create an attorney-client relationship. We make no guarantees as to accuracy, completeness, or changes in the law.