Security Deposits & Post-Closing Occupancy Agreements
Summary
Colorado Senate Bill SB26-054 proposes an exception to the state's statutory security deposit limit, permitting landlords to require deposits exceeding 2 months' rent when the tenant has executed a post-closing occupancy agreement with the buyer of the property. The bill targets residential real property transactions where buyers need temporary occupancy after closing. If enacted, this exception takes effect January 1, 2027.
What changed
Colorado SB26-054 would amend state landlord-tenant law to create an exception allowing security deposits to exceed the current 2-month rent cap when the deposit is connected to a post-closing occupancy agreement executed between a buyer and seller of residential real property. The bill summary confirms the existing prohibition on security deposits exceeding 2 monthly rent payments remains in place for standard tenancies, but transactions involving bona fide post-closing occupancy arrangements may now exceed this threshold.
Landlords and property managers in Colorado should monitor this legislation as it progresses through committee and potential floor votes. Real estate practitioners facilitating residential sales should review their occupancy agreement templates to determine whether enhanced security deposit provisions are needed. The January 1, 2027 effective date provides a compliance runway, but entities should begin assessing current practices and any necessary contract modifications in advance of implementation.
What to do next
- Review current security deposit policies to identify any post-closing occupancy scenarios that may qualify under the new exception
- Update occupancy agreement templates to incorporate enhanced security deposit provisions where applicable
- Monitor SB26-054 through Colorado General Assembly legislative process for amendments or delays before January 2027 effective date
Archived snapshot
Apr 1, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
SB26-054
Security Deposits & Post-Closing Occupancy Agreements
| Type | Bill |
|---|---|
| Session | 2026 Regular Session |
| Subjects | Housing |
Concerning an exception to the statutory limit on the amount that a landlord may require a tenant to provide as a security deposit in cases where the landlord and tenant have executed a post-closing occupancy agreement.
Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:
Current law prohibits a landlord from requiring a tenant to submit a security deposit in an amount that exceeds 2 monthly rent payments. The bill creates an exception to this prohibition for cases in which a buyer and a seller of residential real property have executed a post-closing occupancy agreement in connection with the sale. The exception takes effect January 1, 2027.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
Prime Sponsors
Marc Catlin
Senator
Marc Snyder
Representative
Naquetta Ricks
Representative
Chris Richardson
Committees
Senate
House
Transportation, Housing & Local Government
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Status
Under Consideration
Introduced
Under Consideration
Upcoming Schedule
1 meeting
Apr 1
House Third Reading of Bills - Final Passage
9:00 AM House Chamber
Related Documents & Information
| Date | Version | Documents |
|---|---|---|
| 03/31/2026 | Revised | |
| 02/19/2026 | Reengrossed | |
| 02/18/2026 | Engrossed | |
| 01/27/2026 | Introduced |
| Date | Version | Documents |
|---|---|---|
| 02/13/2026 | PA1 |
| Date | Version | Documents |
|---|---|---|
| 02/04/2026 | Initial Fiscal Note |
| Activity | Vote | Documents |
|---|---|---|
| Refer Senate Bill 26-054 to the Committee of the Whole. | The motion passed on a vote of 13-0. | Vote summary |
| Hearing Summary | Committee Report: PDF | |
| Activity | Vote | Documents |
| --- | --- | --- |
| Adopt amendment L.001 | The motion passed without objection. | Vote summary |
| Refer Senate Bill 26-054, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. | The motion passed on a vote of 7-0. | Vote summary |
| Hearing Summary | Committee Report: PDF | |
| Date | Calendar | Motion |
| --- | --- | --- |
| 02/19/2026 | Third Reading | BILL |
| Date | Amendment Number | Committee/ Floor Hearing | Status | Documents |
|---|---|---|---|---|
| 02/12/2026 | L.001 | SEN Local Government & Housing | Passed [*] |
- Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.
** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.
| Date | Location | Action |
|---|---|---|
| 03/31/2026 | House | House Second Reading Special Order - Passed - No Amendments |
| 03/27/2026 | House | House Second Reading Laid Over Daily - No Amendments |
| 03/24/2026 | House | House Committee on Transportation, Housing & Local Government Refer Unamended to House Committee of the Whole |
| 02/19/2026 | House | Introduced In House - Assigned to Transportation, Housing & Local Government |
| 02/19/2026 | Senate | Senate Third Reading Passed - No Amendments |
| 02/18/2026 | Senate | Senate Second Reading Passed with Amendments - Committee |
| 02/12/2026 | Senate | Senate Committee on Local Government & Housing Refer Amended - Consent Calendar to Senate Committee of the Whole |
| 01/27/2026 | Senate | Introduced In Senate - Assigned to Local Government & Housing |
Prime Sponsor
Sen. M. Catlin | Sen. M. Snyder
Rep. C. Richardson | Rep. N. Ricks
Sponsor
(None) Co-Sponsor
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