[RPPTL LandTen] Strange Question/Common situation

[Harry Heist]

I would love to know how to advise my clients on this.

 

Scenario: The property manager gets fired, owner wants to self manage.
Property manager has been holding the Sec Dep in her Escrow Account.

Question: Can the property manager move the money from the Escrow Account to
the owner's Florida bank account (escrow) and notify the tenant or does the
tenant have to give permission?  If you ask for permission, most tenants
will say NO.

 

Law: FS 83.49 . (7)  Upon the sale or transfer of title of the rental
property from one owner to another, or upon a change in the designated
rental agent, any and all security deposits or advance rents being held for
the benefit of the tenants shall be transferred to the new owner or agent,
together with any earned interest and with an accurate accounting showing
the amounts to be credited to each tenant account. Upon the transfer of such
funds and records as stated herein, and upon transmittal of a written
receipt therefor, the transferor shall be free from the obligation imposed
in subsection (1) to hold such moneys on behalf of the tenant. However,
nothing herein shall excuse the landlord or agent for a violation of the
provisions of this section while in possession of such deposits. .

 

 

2 ways to read this:

 

1. If NEW OWNER or NEW AGENT, just transfer the money. If CURRENT OWNER
wants it YOU CAN'T TRANSFER (without permission of tenant)

 

OR

 

2. "CURRENT OWNER" is not mentioned because it is IMPLIED that it would be
OK to transfer to the CURRENT OWNER with no need for tenant permission.

 

I always told my clients to get tenant permission if it is being transferred
to the CURRENT OWNER but as mentioned, often the tenant refuses. I asked a
FREC Commissioner and he said 'FREC COULD NOT CARE LESS" and FREC does not
want to be involved. One of my property manager clients got sued by the
CURRENT OWNER a while back because the property manager followed my advice
and would not transfer the money to the CURRENT OWNER without the tenant
permission as the tenant was still in the unit and the judge said that
permission by the tenant was not necessary.

 

Thoughts?   Is it better to ask for permission or forgiveness???   I am not
so much worried about the statute as it is weak in the penalty arena BUT I
worry about FREC as this would be considered "failure to account and
deliver".    Is there any way to get a FREC opinion? 

 

Harry
 

 

LAW OFFICES OF 
HEIST, WEISSE, DAVIS & WOLK P.A.
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website:  www.evict.com <http://www.evict.com/>  
Email: harry at evict.com

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