U.S. Real Estate Property Law & Tenant Rights (2026)

Practical 2026 overview of federal housing protections, state landlord-tenant rules, security deposits, eviction procedures, habitability standards, and FIRPTA withholding for foreign sellers of U.S. real property.

Executive Legal Overview

Real estate and landlord-tenant law in the United States combine federal protections and tax rules with state and local property and housing laws. The Fair Housing Act and FIRPTA are federal frameworks, while lease terms, security deposits, eviction procedures, habitability standards and many tenancy remedies are primarily governed by state and local law. There is no single nationwide landlord-tenant code.

Whether you are renting an apartment as an expat or purchasing U.S. residential real estate as a foreign national, understanding statutory notice requirements, security deposit caps, and eviction protections is essential for legal compliance and financial security.

Related Housing Master Guides: For state deposit cap rules and non-SSN rental screening, see our US Renter's Guide & Deposit Checker. For foreign national home loans and Fannie Mae B2-1.2-03 rules, visit Expat Mortgage Guide.

Fair Housing Act Protection

The federal Fair Housing Act, including 42 U.S.C. § 3604, prohibits covered housing discrimination based on protected characteristics including national origin. Citizenship or immigration status is not itself listed as a federal FHA protected class, although state and local laws may provide additional protections.

Implied Warranty of Habitability

Many states impose habitability duties requiring landlords to maintain residential premises in legally required safe and sanitary condition. The specific standards, exceptions and tenant remedies vary by state and local law.

Security Deposit Return Deadlines by State

Security-deposit return rules vary by state and can also vary by local ordinance. The examples below illustrate selected jurisdictions and should not be treated as a nationwide table:

State	Statutory Code	Deposit Return Deadline	Deposit Amount Cap
California	Cal. Civ. Code § 1950.5 (AB 12)	21 Calendar Days	Generally 1 Month; qualifying small landlords may charge up to 2 Months
New York	NY Real Prop. Law § 7-108	14 Calendar Days	Max 1 Month Rent
Massachusetts	Mass. Gen. Laws ch. 186 § 15B	30 Calendar Days	Max 1 Month Rent
Texas	Tex. Prop. Code § 92.103	30 Calendar Days	No Statutory Cap
Florida	Fla. Stat. § 83.49	15 Days (No Claim) / 30 Days	No Statutory Cap
Illinois	765 ILCS 710/1	Varies by property size & local ordinance	No Statutory Cap

Eviction Laws & Anti-Self-Help Protections

Landlords generally cannot bypass the legally required eviction process by using prohibited lockouts, utility shutoffs, removal of belongings or similar self-help measures. The exact notice, court procedure, defenses and enforcement method vary by state and sometimes by locality.

Judicial Eviction Procedure Overview:

Required Notice: The landlord must provide the notice required by the applicable state or local law. Notice periods differ substantially by jurisdiction and by the reason for termination.
Court Filing: If the tenant does not comply with a valid notice, the landlord generally must use the jurisdiction's judicial eviction process rather than physically removing the tenant.
Judicial Process: The tenant receives the procedural protections provided by the applicable court rules and may raise legally recognized defenses.
Enforcement: After a valid judgment or possession order, enforcement is carried out according to the applicable state/local procedure, generally through authorized law enforcement or another authorized officer.

Foreign Investment in Real Property Tax Act (FIRPTA)

Under 26 U.S.C. § 1445 (FIRPTA), a disposition of a U.S. real property interest by a foreign person is generally subject to withholding. In most cases, the buyer/transferee must withhold 15% of the amount realized. “Amount realized” can include cash, the fair market value of other property transferred, and liabilities assumed by the transferee.

Residence rules: If an individual acquires the property as a residence and the amount realized is $300,000 or less, no FIRPTA withholding is generally required if the statutory residence conditions are satisfied. For a qualifying residence with an amount realized above $300,000 but not more than $1 million, the withholding rate is generally 10%. Above $1 million, the general 15% rate generally applies. The buyer or a member of the buyer's family must have definite plans to reside at the property for at least 50% of the days the property is used during each of the first two 12-month periods.

Why State and Local Law Matters

There is no single nationwide residential landlord-tenant code governing every lease in the United States. Federal law establishes important protections and tax rules, but many practical rental questions are controlled by state and local law.

Security Deposits

Deposit limits, permissible deductions, accounting requirements, interest requirements and return deadlines differ substantially. Local ordinances can impose rules that are different from the statewide baseline. For example, Illinois has different timelines depending on property size and local ordinances, while California's current statewide rules include exceptions to its general one-month cap.

Eviction

A landlord should not assume that a three-day notice, 30-day notice or 60-day notice applies to every U.S. tenancy. The required notice depends on the jurisdiction, the reason for eviction or termination, the lease, the length of the tenancy and sometimes the tenant's circumstances. The court process and enforcement method also vary.

Habitability

Habitability standards are generally designed to require legally adequate living conditions, but the exact standards and remedies differ. A tenant should not automatically withhold rent or make repairs and deduct the cost without first checking the applicable state and local procedure.

Fair Housing and Immigration Status

The federal Fair Housing Act protects against discrimination based on national origin, but it does not list citizenship or immigration status as a separate federal protected class. State and local governments may impose additional restrictions, so landlords and tenants should check the law where the property is located.

FIRPTA for Foreign Sellers

FIRPTA is separate from ordinary landlord-tenant law. When a foreign person disposes of a U.S. real property interest, the buyer generally acts as the withholding agent. The standard rate is 15% of the amount realized, but qualifying residential transactions can receive reduced or zero withholding under specific statutory conditions. A seller can also seek an IRS withholding certificate when appropriate.

Official Statutory References & Authorities

🏛️ U.S. Department of Housing and Urban Development (HUD): Fair Housing Act Guidelines (42 U.S.C. § 3604)
🏛️ Internal Revenue Service (IRS): FIRPTA Withholding Tax Rules (26 U.S.C. § 1445)
🏛️ California Legislative Information: California Assembly Bill 12 (Security Deposit Caps)
🏛️ New York State Attorney General: NY Residential Tenants' Rights Guide

Frequently Asked Questions

The federal Fair Housing Act prohibits housing discrimination based on national origin, along with race, color, religion, sex, familial status and disability. Citizenship or immigration status is not itself a federal Fair Housing Act protected class. However, state and local laws may provide additional protections relating to immigration or citizenship status, so the applicable state and local rules must also be checked.

Security-deposit deadlines vary by state and sometimes by local ordinance. California generally requires return and the required accounting within 21 calendar days (Cal. Civ. Code § 1950.5); Texas generally requires refund within 30 days after surrender (Tex. Prop. Code § 92.103); Florida generally provides 15 days when no claim is made and 30 days for the landlord's notice of intention to impose a claim, subject to the statute's procedures; Massachusetts generally requires return within 30 days (Mass. Gen. Laws ch. 186 § 15B). New York's security-deposit rules are principally governed by Real Property Law § 7-108, and local laws can impose additional requirements.

Many states recognize an implied warranty of habitability or impose statutory habitability standards on residential landlords, but the precise duties, exceptions and tenant remedies vary by state and locality. Common requirements can include safe and sanitary conditions, functioning essential systems and compliance with applicable housing codes. Rent withholding, repair-and-deduct and other remedies are highly jurisdiction-specific and should not be treated as automatically available nationwide.

FIRPTA generally requires the transferee/buyer to withhold 15% of the amount realized when acquiring a U.S. real property interest from a foreign person. The amount realized is broader than simply the cash purchase price and can include assumed liabilities and other consideration. For a qualifying residence acquired by an individual for $300,000 or less, withholding is generally not required if the statutory residence conditions are met. For qualifying residential transactions above $300,000 and up to $1 million, a 10% withholding rate generally applies; above $1 million, the general 15% rate applies. Other exceptions and withholding-certificate procedures may apply.

A fixed-term lease runs for a stated period, such as 12 months, subject to the lease and applicable law. A month-to-month tenancy generally renews from rental period to rental period, but the required termination notice is determined by state and local law and can differ from a universal 30-day rule. Some jurisdictions require longer notice in particular circumstances.

Have questions about Fair Housing protected classes, state security deposit caps, or FIRPTA rates?

⬆️ Refer to FAQ Section Above

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