Mich. Comp. Laws § § 554.614
Termination of landlord's interest; liability for security deposit.
Operative Text
Sec. 14. Upon termination of a landlord's interest in a rental unit whether by sale, assignment, death, appointment of receiver or otherwise, the landlord or his agent is liable with respect to the security deposit, until the occurrence of any of the following: (a) Transfer of the deposit to the landlord's successor in interest and written notification to the tenant by ordinary mail of the transfer and of the successor's name and address. (b) Compliance with section 4 by the successor in interest. (c) Return of the security deposit to the tenant.
Under MCL § 554.614, when a landlord's interest in a rental property ends—whether through a sale, assignment, death, receivership, or any other means—the departing landlord remains legally responsible for the tenant's security deposit until one of three things happens: the deposit is transferred to the new owner and the tenant is notified in writing by mail of that transfer along with the new owner's name and address; the new owner complies with the security deposit requirements of Section 4 of the same statute; or the deposit is simply returned to the tenant. This provision ensures that a change in ownership does not leave tenants without recourse for their security deposits.
Plain English — not legal advice.
Property owners and managers subject to MCL § 554.614 should be aware that selling or otherwise transferring a rental property does not automatically end their liability for held security deposits. A compliant transfer generally involves physically moving the deposit funds to the successor owner, sending the tenant written notice by ordinary mail identifying the new owner's name and address, and confirming that the successor has fulfilled the requirements of Section 4 of the Michigan Security Deposit Act. Operators who handle these steps carefully at closing reduce the risk of remaining on the hook for deposit obligations after they no longer control the property.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
MCL § 554.614 protects tenants by keeping the original landlord liable for a security deposit even after the property changes hands, until specific conditions are met. If a tenant has not received written notice by ordinary mail of a deposit transfer—including the new owner's name and address—or has not had the deposit returned, the prior landlord may still bear responsibility under this provision. Tenants who believe their deposit has been mishandled during an ownership transition can look into filing a complaint with a local tenant-rights organization, consulting a housing attorney, or exploring remedies available under the broader MCL § 554.601 et seq. framework.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation