What Happens to My Security Deposit if My Landlord Sells in Alberta?

Your building has been sold, or you have heard it might be. You paid a deposit to the old landlord and want to know who now owes it back to you.

This article explains the deposit rules that apply throughout a tenancy and how to protect yourself. How responsibility passes between an old and new owner depends on the facts of the sale, so a lawyer can confirm your situation.

This article covers the law of Alberta.

How your deposit must be handled

A landlord must put a cash deposit in an interest-bearing trust account at an Alberta bank, treasury branch, credit union or trust company within 2 banking days of receiving it. Records of the deposit must be kept at least 3 years after the tenancy ends.

A security deposit cannot exceed one month's rent, or the monthly equivalent if rent is paid on another schedule. It also cannot be increased when rent increases or for any other reason during the tenancy. A new owner cannot ask you for a top-up after a sale, because a landlord cannot require a tenant to pay an increase in an existing deposit.

Interest on your deposit

Interest on a cash deposit is paid annually at the prescribed rate. The Alberta.ca interest chart lists 0.0% for January 1 to December 31, 2026 and 0.5% for 2025.

The exception is that you and the landlord may agree in writing that interest is compounded and paid at the end of the tenancy instead of annually. If you signed such an agreement, keep a copy.

Who returns the deposit after a sale?

Within 10 days after you give up possession, the landlord must return the deposit with interest, or the balance with a statement of account showing deductions. If the exact deduction cannot yet be determined, the landlord returns the balance not needed with an estimated statement, then gives the rest and a final statement within 30 days.

What a sale changes about who holds the money and who owes it to you depends on the sale terms and the facts. That is worth confirming with a lawyer before you move out, rather than after a dispute starts.

A sale can also affect your tenancy. A landlord may end a periodic tenancy for a sale where the purchaser or a relative will occupy, or, for a detached, semi-detached or condominium unit, where the purchaser requests notice in writing. A landlord's notice to end a periodic tenancy is of no effect unless it is for a prescribed reason or a reason under section 11 or 12 of the Act.

If your deposit is not returned

If the landlord fails to return the deposit or statement as required, you may sue to recover it, and the court determines permitted deductions and orders the balance paid. Tenants may apply to RTDRS or Court over deposit deductions.

• Either party may apply to the Residential Tenancy Dispute Resolution Service (RTDRS) instead of court.
• Once one party files with RTDRS, the other is bound to that forum, and a court application on the same dispute is barred unless the RTDRS application is withdrawn.

What to do next

• Keep your lease, deposit receipt and proof of payment.
• Keep your move-in inspection report and photos, and keep records for 3 years.
• Give the landlord your forwarding address in writing.
• Ask in writing who now holds your deposit and in what account.
• Get legal advice if you cannot get a clear answer, or if you receive a notice to end your tenancy.

Frequently asked questions