Maine · 14 M.R.S. §§6035, 6038Maine tenant security deposits when you sell a rental: transfer at closing

Maine ties the deposit transfer to the closing itself. When a landlord's interest in a dwelling unit ends – by sale, assignment, death, a receivership or otherwise – whoever holds the deposits must either give the successor an accounting of each tenant's deposit, transfer the funds (or what remains after lawful deductions) to the successor and mail each tenant notice of the transfer, the transferee's name and address and a copy of the accounting, or return the funds to the tenant (14 M.R.S. §6035(1)). If the interest ends by sale, the accounting and transfer must occur no later than at the real estate closing, and the holder must give the successor written proof of the accounting and transfer at the closing. Once that's done the seller is released, and the buyer has all the rights and obligations of a landlord holding the deposits (§6035(2)); the new owner assumes responsibility for maintaining and returning the deposits accounted for and transferred (§6038(1)). Deposits must be kept in a bank or other financial institution account beyond the reach of the landlord's creditors – even a foreclosing mortgagee – and a violation entitles the tenant to actual damages, $500 or one month's rent, whichever is greatest, plus costs (§6038). The rules the buyer inherits: no more than two months' rent; return within the time in a written lease, up to 30 days, or 21 days for a tenancy at will, or forfeit the right to withhold; double damages for wrongful retention (§§6032–6034). The chapter doesn't apply to owner-occupied buildings of five or fewer units (§6037).