Washington · RCW 59.18Washington tenant security deposits when a rental property is sold

Washington law spells out what happens to tenants' deposits when a landlord sells. Under RCW 59.18.270, deposits must be held in a trust account for tenants' deposits at a financial institution or licensed escrow agent located in Washington; the tenant gets a written receipt and written notice of the depository's name and address. If the status of landlord is transferred during a tenancy, the sums in the deposit trust account affected by the transfer must simultaneously be transferred to an equivalent trust account of the successor landlord, and the successor must promptly notify the tenant of the transfer and of the new depository's name, address and location. In a foreclosure, an owner who neither transfers the deposit to the successor nor refunds it immediately can owe up to twice the deposit. Tenants' claims to the deposit come before the landlord's creditors, even a bankruptcy trustee, and even if the money was commingled. The rules the buyer inherits: a deposit can be collected only with a written rental agreement stating when it can be withheld and a signed, dated move-in checklist of the unit's condition; nothing may be withheld for ordinary wear (RCW 59.18.260). Within 30 days after the agreement ends and the tenant moves out, the landlord must give a full and specific statement of any deductions with estimates or invoices, plus any refund; missing the deadline makes the landlord liable for the full deposit, and a court may award up to twice the deposit for intentional refusal (RCW 59.18.280).