Rental deposit when the property is sold
What happens to the deposit when the property is sold? Transfer, tenant rights.
The principle of lease continuity upon sale
In Belgium, the sale of a rented property does not end the lease. This is the fundamental principle of article 1743 of the Civil Code: the lease follows the property. The buyer becomes the new landlord and assumes all the rights and obligations of the previous owner.
This principle applies fully to the rental deposit. The tenant does not have to pay a new deposit, nor modify the existing blocked account. The lease continues on the same terms, as if the sale had not taken place.
See our guide on change of owner during a lease for the general implications of a sale.
What concretely happens to the deposit?
Deposit in a blocked account (normal situation)
If the deposit was correctly placed in an individualised account at a bank, it remains unchanged. The account is in the tenant’s name and does not change holder. Only the landlord’s reference in the bank file needs to be updated.
Unblocked deposit (irregular situation)
If the previous owner held the deposit in hand (non-compliant with the law), the transfer is more delicate. The previous owner must hand the amount to the new owner, or finally place it in a blocked account.
| Form of deposit | Impact of ownership change |
|---|---|
| Individualised blocked account | No change, bank file updated |
| Bank guarantee (PCSW) | Follows the lease, no modification |
| Deposit held in hand | Previous owner must transfer to new owner |
| Third-party surety | Surety remains valid, guarantor is informed |
New owner’s obligations
The new owner must:
- Respect the existing lease in all its clauses, including those related to the deposit
- Make themselves known to the tenant by providing contact details for correspondence
- Co-sign the release of the deposit at the end of the lease, in place of the previous owner
They may not:
- Demand an additional deposit
- Modify the deposit conditions
- Request the transfer of the blocked account to another bank
- Withhold the deposit for damage prior to their acquisition (unless noted in the move-in inventory)
Common problems and solutions
The previous owner pocketed the deposit
If the previous owner collected the deposit without placing it in a blocked account and refuses to transfer it to the new owner, the tenant may take action against the previous owner before the Justice of the Peace.
The new owner is unaware of the deposit
The deed of sale must mention the existence of the lease and the rental deposit. If it does not, the buyer has recourse against the seller, but the tenant remains protected.
Disagreement over the move-out inventory
If the new owner disputes the move-out property inventory, they must rely on the move-in inventory conducted with the previous owner. They cannot invoke damage that predates their acquisition.
Practical advice
- Verify that your deposit is in a blocked account — request a statement from your bank
- Obtain the new owner’s contact details in writing
- Keep a copy of the move-in inventory — it is the reference document regardless of the owner
- Inform your bank of the change of owner so the file can be updated
For a lease incorporating deposit transfer clauses in case of sale, use our online lease generator. Also see our guide on landlord bankruptcy for another change-of-landlord scenario.