I purchased a unit and the seller did not tell me about the tenant security deposit. How to make the seller pay it back?

I understand how frustrating this is. In Dubai, the security deposit always follows the tenancy, so once the title was transferred, you became the party obliged to hold that deposit for your tenant, even if the seller never passed the money on.

The quickest way to keep the tenant calm is to acknowledge the deposit in writing and issue a simple receipt confirming you are now holding it.

If you do not actually have the funds, you can pay the tenant now (or offset it against the next rent) and then recover the amount from the seller.

Your next step is to put the seller and the agent on formal notice.

A short legal letter usually prompts payment within days; if they still ignore you, we can escalate to a Rental Dispute Centre claim or a civil case for breach of the sale agreement and negligence by the agent.

Both routes allow you to claim the deposit plus any costs you have incurred.

I can draft the notice, handle all follow-ups with the broker, and file the case if needed. Feel free to reach me on WhatsApp or phone so we can resolve this swiftly.

Thank you for contacting us via Legal Advice Middle East

Your case falls within a recurring issue we’ve successfully handled before, where the security deposit was overlooked during a property transfer, and the new owner found themselves unexpectedly liable.

In one of our recent cases, the court held the new owner responsible for the tenant’s deposit, as they had assumed the tenancy with all its obligations, even though the seller failed to pass the deposit.

There are several legal approaches depending on how the transfer agreement was structured and whether there was any clause regarding the tenant’s financials.

If the security deposit was not explicitly addressed, you may still be held liable, as the lease obligations transfer with the property.

However, this opens a valid legal claim against the former owner and possibly the agent, if it’s proven that she had a duty to disclose or facilitate the deposit transfer.

The most effective step now is to officially notify the tenant that you are investigating the deposit issue and request time to settle the matter.

Meanwhile, we can assist in preparing a formal demand letter to the previous owner, and if needed, initiate a legal claim against them or the agency for recovery.

Your position can be further strengthened if there is email or WhatsApp evidence showing that the deposit was discussed post-transfer.

Our firm is fully equipped to handle these landlord-tenant disputes swiftly, and we know how to present the claim persuasively before the Rental Disputes Center if it reaches that stage.

To determine the most appropriate legal step, we need to examine the sale and purchase contract, the tenancy agreement, the Ejari record, and all correspondence.

Our consultants speak Arabic, English, Russian, Hindi, and Chinese and are ready to help immediately.

This response is provided by Rashid Al Kaitoob Advocates & Legal Consultants based solely on the information you’ve provided and does not constitute a final legal opinion. A binding legal assessment can only be given after reviewing the full documents of the case.

We’d appreciate your positive review of our office after we assist you.

Hello,

When the property is sold, the security deposit usually stays with the property, but the new owner is responsible for returning it at the end of the tenancy (if the contract is still valid and the tenant remains in the property).

File a complaint with the Dubai Land Department (DLD) or the Real Estate Regulatory Agency (RERA).

They can assist in resolving disputes between property buyers and sellers, especially in cases where obligations are not fulfilled during property transfers.

The new owner replaces the previous owner: Once ownership of the property is transferred to you, you, as the new owner, replace the previous owner with all rights and obligations related to the existing lease.

This includes the obligation to return the security deposit to the tenant upon termination of the lease and to hand over the property in the agreed-upon condition.

Agent's Role: The agent who calculated and transferred the remaining rent should have also calculated and transferred the security deposit.

Failure to do so constitutes an error on their part, and you can file a complaint against them as an agent on behalf of the previous landlord.

Dear Questioner,

Thank you for your message.

In such cases, under UAE tenancy law, particularly in Dubai, the security deposit paid by the tenant is tied to the property, not to the individual landlord.

Therefore, when you purchased the unit, you became the new landlord, and the deposit is now technically your responsibility, even if the amount was not transferred to you by the previous owner.

Here’s what you can do:

Review the Sale and Purchase Agreement (SPA):

Check whether the deposit was mentioned in the SPA or if the agent had a duty to ensure its transfer. If it was not addressed, the agent may have been negligent in handling the transaction.

Follow Up Formally with the Agent:

Send a written notice (email or letter) to the agent demanding clarification and assistance in recovering the deposit from the previous owner, as they handled the transaction and had knowledge of the tenancy.

Communicate with the Tenant:

Explain to the tenant that you are trying to recover the deposit and that you were not handed the funds.

However, under law, the tenant may rightfully demand the deposit from you upon vacating the unit, so it’s best to maintain transparency.

Legal Option:

If the deposit amount is substantial and the previous owner remains unreachable, you may consider filing a civil claim against the previous owner and/or the agent, depending on their contractual obligations and handling of the matter.

Please let us know if you’d like us to assist you with reviewing the documentation or initiating a legal step.

Best regards,

Mohammed Salah

Legal Consultant

In this situation, you should ensure that you are not responsible for paying the tenant's security deposit.

Since you purchased the unit after the lease expired, the security deposit should be the responsibility of the previous owner.

You should contact the party that transferred ownership (the real estate agent or the transferor) and explain the situation.

There may have been an error in the transfer of ownership or a misunderstanding about who is responsible for the deposit.

We can take all necessary steps. Contact us.

Send a legal notice through a lawyer to the previous landlord demanding that they:

- Return the security deposit to you, the new landlord.

- Or directly to the tenant (if easier).

If they do not respond within the legal deadline, this will be the basis for a subsequent civil lawsuit against them to recover the deposit.

For assistance, please contact us via phone or WhatsApp.