Connecticut · Gen. Stat. §47a-21Connecticut tenant security deposits when you sell a rental

Connecticut spells out how deposits move on a sale. A security deposit stays the tenant's property, with the landlord holding only a security interest, and any transfer of the landlord's interest assigns that security interest to the successor (Conn. Gen. Stat. §47a-21(c)). Landlords must keep deposits in escrow accounts at a Connecticut financial institution (§47a-21(h)(1)), and whenever the real estate is transferred to a successor, the landlord must withdraw and deliver to the successor the entire amount of the deposits paid by tenants of that property plus accrued interest – a pro rata share if the account is commingled and short (§47a-21(h)(3)(A)). Within 30 days after receiving a tenant's deposit from the tenant or the previous landlord, the landlord gives each tenant written notice of the amount held and the name and address of the financial institution (§47a-21(h)(4)(A)). The successor is liable for deposits that become due while it is the landlord (§47a-21(e)). At the end of a tenancy, the landlord at that time pays the deposit and accrued interest – less damages, itemized in writing – within 21 days after termination or 15 days after receiving the tenant's forwarding address, whichever is later, or is liable for twice the deposit (§47a-21(d)). Interest is owed annually at no less than the deposit index (§47a-21(i)), and deposits are capped at two months' rent, or one month for tenants 62 or older (§47a-21(b)).