When your landlord interest ends, you or your agent must, within a reasonable time, either transfer each deposit to the buyer, less any lawful deductions, and notify the tenant of the transfer and the buyer's name and address, or return the deposit to the tenant, less any lawful deductions. Either option ends your deposit liability.
If you transfer a deposit, written notice of the amount transferred must include a stamped envelope addressed to the buyer. If the tenant does not object within 20 days after that notice, the buyer's duty to return the deposit is limited to the amount transferred. See Iowa Code §562A.12(5)–(6).