Yes. The landlord/old owner will have to turn over unused rent and the security deposit plus interest to the new owner. Unused rent would be this: July rent was paid and you are closing on July 15. Rent from July 1-15 belongs to the landlord/old owner and the remainder goes to the new owner. Your attorney should take care of this and your lender should know about it so there are no surprises at the closing.
Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area. Contact us at http://www.ranjmohip.com
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