The lease and security deposit
Where the Act applies, the landlord must keep a tenant's security deposit in an account used only for security deposits and tell the tenant where the account is. Unless agreed otherwise, a seller who sells in good faith is released from lease obligations for later events only after the tenant receives written notice of the sale and the deposit is transferred to the buyer.
Keep each lease, deposit balance, account information, and tenant communications together so the notice and deposit handoff can be discussed for the closing. Tennessee's sale-notice and deposit-transfer provision is in Tennessee Code §66-28-305.
