If I buy a rental that is 100% occupied does the seller give the buyer the security deposit?

Yes, and double check to HUD statement to make sure it is one there! This is something that can be easily missed.

Yes. It is all transferred

The answer is yes if the seller collected a security deposit it is passed on to the buyer.

When you purchase a rental property that is leased you are also buying the existing leases. The deposits that are held by the seller should be transferred to the new owner. You will need to account for the deposit when the tenants move out. There is a form letting the tenants know that their deposit is being moved and who is holding it now. I manage lease property, if you need any help you are welcome to contact me. Jodi@FirstMarketRealty.com

Yes, all the funds associated with the property, security deposits and prorated rent for the month of the closing, should be reflected on the HUD at closing. The lease agreement and/or proof of these funds needs to be sent to the title company to be included on the HUD. An Amendment to the lease (signed by the tenant) transferring name to the new landlord is also necessary, or, if the lease form currently in place is on an outdated promulgated form a new lease will need to be signed by the new landlord and tenant.

Please consult with your attorney to ensure no detail about the transfer of the lease to a new landlord is left undone. If you or your Realtor overlook one of the details related to the tenant or the lease contract, it could have negative unintended consequences down the road for the new landlord.
an attorney review the transaction file will be well worth it! Peace of mind is priceless!

Yes...The security deposit should be transferred from the seller to the buyer at closing. The buyer will then be responsible for refunding the deposit to the tenant when the tenant moves out. The buyer should also receive credit for any prorated rent already paid by the tenant through the date of closing. This should all be written into the contract to avoid any confusion at closing.

The deposit does not belong to the landlord and should be given to the new buyer.

That will be something that should clearly be taken care of when writing up the contract. The seller should disclose how much in deposits he has.

As the new landlord, you will be responsible for that. In my opinion, the seller should give you a credit for the deposits on file, or issue some type of reduction. This is particularly more important if it's a multi-unit complex.