Wash. Rev. Code § 59.18 § 59.18.270
Moneys paid as deposit or security for performance by tenant -- Deposit by landlord in trust account -- Receipt -- Remedies under foreclosure -- Claims.
Operative Text
All moneys paid to the landlord by the tenant as a deposit as security for performance of the tenant's obligations in a lease or rental agreement shall promptly be deposited by the landlord in a trust account, maintained by the landlord for the purpose of holding such security deposits for tenants of the landlord, in a financial institution as defined by *RCW 30.22.041 or licensed escrow agent located in Washington. Unless otherwise agreed in writing, the landlord shall be entitled to receipt of interest paid on such trust account deposits. The landlord shall provide the tenant with a written receipt for the deposit and shall provide written notice of the name and address and location of the depository and any subsequent change thereof. If during a tenancy the status of landlord is transferred to another, any sums in the deposit trust account affected by such transfer shall simultaneously be transferred to an equivalent trust account of the successor landlord, and the successor landlord shall promptly notify the tenant of the transfer and of the name, address, and location of the new depository. If, during the tenancy, the tenant's dwelling unit is foreclosed upon and the tenant's deposit is not transferred to the successor after the foreclosure sale or other transfer of the property from the foreclosed-upon owner to a successor, the foreclosed-upon owner shall promptly refund the full deposit to the tenant immediately after the foreclosure sale or transfer. If the foreclosed-upon owner does not either immediately refund the full deposit to the tenant or transfer the deposit to the successor, the foreclosed-upon owner is liable to the tenant for damages up to two times the amount of the deposit. In any action brought by the tenant to recover the deposit, the prevailing party is entitled to recover the costs of suit or arbitration, including reasonable attorneys' fees. The tenant's claim to any moneys paid under this section shall be prior to that of any creditor of the landlord, including a trustee in bankruptcy or receiver, even if such moneys are commingled.
Under Wash. Rev. Code § 59.18.270, security deposits must be held in a dedicated trust account at a Washington financial institution or licensed escrow agent, and tenants must receive a written receipt plus notice of the depository's name and address. If ownership of the property changes hands, the deposit must move to the new owner's equivalent trust account, with prompt notice to the tenant. In a foreclosure scenario, if the deposit is not transferred to the successor, the prior owner must refund it immediately or face liability for up to twice the deposit amount. Tenants' claims to these funds take priority over the landlord's creditors, including in bankruptcy.
Plain English — not legal advice.
Operators subject to Wash. Rev. Code § 59.18.270 generally maintain a dedicated trust account at a qualifying Washington financial institution or licensed escrow agent and issue written receipts that identify the depository's name and address. When ownership transfers, compliant landlords simultaneously move affected deposits to the successor's trust account and notify tenants of the new depository. In a foreclosure situation, the prior owner must either transfer the deposit to the successor or refund it to the tenant immediately after the sale to avoid liability for double damages plus attorneys' fees.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Wash. Rev. Code § 59.18.270 gives tenants the right to a written receipt for their security deposit and written notice of where those funds are held in trust. If a foreclosure occurs and the deposit is not transferred to the new owner, the prior landlord owes an immediate full refund — and failure to comply can result in liability for up to twice the deposit amount. Tenants who prevail in a court or arbitration action to recover their deposit may also be entitled to costs and reasonable attorneys' fees; tenant-rights organizations can help identify available options.
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 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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