What happens to the tenant's security deposit at closing?

A tenant's security deposit transfers from the seller to the buyer at closing along with the lease itself, since South Carolina law treats a security deposit as the tenant's money held in trust rather than the landlord's to keep upon selling the property. The closing documents should specifically account for that transferred deposit so the new owner knows what they are holding and what they owe back at move-out. Brian Beatty makes sure this transfer is documented in any sale involving a tenanted property.