Utah · Code §§57-17-3–57-17-5Utah tenant security deposits when you sell a rental

Utah's deposit statute binds the holder of the owner's or designated agent's interest in the premises at the time the tenancy ends (Utah Code §57-17-4) – so after a sale, the buyer is the one who must handle the deposits of tenants who stay. No later than 30 days after a renter vacates and returns possession, the owner or agent must mail or deliver to the renter's last known address – or send electronically by a means the renter provided – the balance of the deposit, the balance of any prepaid rent and, if anything was deducted, a written notice itemizing and explaining each deduction (§57-17-3(2)). Deductions may cover rent, damage beyond reasonable wear and tear, cleaning and other costs and fees in the contract (§57-17-3(1)). If the owner misses that, the renter may serve a notice in the statutory form, and the owner then has five business days to comply (§57-17-3(3)–(5)); an owner who still doesn't can be made to return the full deposit and prepaid rent plus a $100 civil penalty, with costs and attorney fees if the court finds bad faith (§57-17-5). Because the buyer will be bound when those tenancies end, the deposits the seller holds are something to account for between seller and buyer at closing.