Deposit When the Apartment Is Sold: Who's Liable If the Landlord Changes?

If the apartment you rent is sold during your tenancy, an uncomfortable question comes up for many tenants: is the deposit you paid still safe with the new owner? The law gives a clear, two-step answer.

The new owner takes over the deposit obligation

Under Section 566a BGB, the buyer of a rented apartment automatically takes over the rights and obligations arising from the security the tenant provided. That applies regardless of whether the original landlord actually passed the deposit on to the new owner. Legally, nothing changes for the tenant about the basic entitlement to get the deposit back; only the identity of the debtor changes along with the transfer of ownership.

If the new owner doesn't return the deposit

The second, often decisive part of Section 566a BGB gives tenants extra protection: if the tenant can't recover the deposit from the new owner when the tenancy ends, for example because the new owner is insolvent or never actually received the deposit, the original landlord remains obligated to repay it. The old landlord effectively acts as a fallback guarantor if the successor doesn't pay out the security.

What this means in practice

For tenants, this means: if the deposit isn't returned by the current owner at move-out, that owner should be the first point of contact. If that fails, for example because the amount wasn't properly handed over or the new owner is insolvent, the tenant can turn directly to the original landlord and demand repayment from them, based on the second sentence of Section 566a BGB.

What to document when ownership changes

It's worth getting the change of ownership and the handover of the deposit confirmed in writing where possible, for instance through a letter from the previous or new owner stating the date of the transfer and the amount of deposit handed over. That makes it easier later, in a dispute, to identify the right party to claim against.

Conclusion

When a rented apartment is sold, the new owner automatically takes on the obligation to repay the deposit. If that fails, the original landlord remains liable under Section 566a BGB, so the tenant's deposit is protected either way.

Frequently Asked Questions

Who repays the deposit if the apartment was sold?

Generally the new owner, who automatically takes over the deposit obligation under Section 566a BGB.

What if the new owner doesn't pay?

Then the original landlord remains obligated to repay it, regardless of whether they ever passed the deposit on.

Do I need to do anything as a tenant when ownership changes?

It's advisable to get the transfer and the amount of deposit handed over confirmed in writing, so claims can be clearly assigned later.

Do I lose my deposit if the new owner becomes insolvent?

No. If the deposit can no longer be recovered from the new owner, the original landlord remains liable under the second sentence of Section 566a BGB.

Anyone looking for a new apartment can browse current listings on Waitly. For what a landlord may generally deduct from the deposit, see What Landlords Can Deduct From Your Deposit in Germany. For the deposit cap and installment rights, see Deposit Amount and Section 551 BGB. How deposit interest is calculated is explained in Deposit Interest.