Security Deposit Not Returned in North Carolina: What Can I Do?

What the law says

1. 1

   After you move out, North Carolina law says your landlord must use your deposit for allowed costs or refund it to you.

   Source:

   1. § 42-52, North Carolina General Assembly. Law.
2. 2

   Your landlord must send you a written list that explains each item of damage, along with the rest of your deposit, within 30 days. This 30-day period starts the day your lease ends and you hand back the keys.

   Source:

   1. § 42-52, North Carolina General Assembly. Law.
3. 3

   If your landlord cannot yet tell the damage cost, your landlord must first send a partial accounting within 30 days after your lease ends. Your landlord must then send a complete accounting within 60 days after your lease ends.

   Source:

   1. § 42-52, North Carolina General Assembly. Law.
4. 4

   If your landlord does not have your address, your landlord can apply your deposit to allowed costs starting 30 days after your lease ends. After that, your landlord must hold what is left of your deposit for you to collect for at least 6 months.

   Source:

   1. § 42-52, North Carolina General Assembly. Law.
5. 5

   By law, your landlord in North Carolina can only use your deposit for a specific list of costs. These include rent you did not pay, unpaid water or sewer bills, and unpaid electric bills. Your landlord can also use it for damage to the home. This includes a damaged or destroyed smoke alarm or carbon monoxide alarm (a device that detects a dangerous gas).

   Source:

   1. § 42-51(a), North Carolina General Assembly. Law.
6. 6

   Your landlord can use your deposit for money you owe if you break your lease and move out early. This does not apply if you ended the lease under N.C.G.S. 42-45 or 42-45.1. It also does not apply if you had to leave because your landlord broke certain housing laws. The same is true if your landlord did not keep the home fit to live in.

   Source:

   1. § 42-51(a), North Carolina General Assembly. Law.
7. 7

   Your landlord can use your deposit for unpaid bills that become a lien (a legal claim on the property) because you lived there. It can also cover the costs of re-renting after you break the lease, and court costs.

   Source:

   1. § 42-51(a), North Carolina General Assembly. Law.
8. 8

   Your landlord can use your deposit for the cost of removing and storing your belongings after an eviction case. It can also cover fees North Carolina law allows.

   Source:

   1. § 42-51(a), North Carolina General Assembly. Law.
9. 9

   Your landlord cannot use your deposit for normal wear and tear (normal use over time). Your landlord also cannot keep more of your deposit than your landlord's actual costs.

   Source:

   1. § 42-52, North Carolina General Assembly. Law.

If your landlord does not pay

10. 10

    If your landlord does not properly account for your deposit or pay back what you are owed, you can file a lawsuit. The lawsuit can ask the court to make your landlord account for the deposit and pay back the balance.

    Source:

    1. § 42-55, North Carolina General Assembly. Law.
11. 11

    If your landlord breaks the deposit rules on purpose, your landlord loses the right to keep any part of your deposit.

    Source:

    1. § 42-55, North Carolina General Assembly. Law.
12. 12

    You can also recover money for any loss caused by your landlord not following the deposit rules, on top of getting your deposit back.

    Source:

    1. § 42-55, North Carolina General Assembly. Law.
13. 13

    If a court finds your landlord broke the deposit rules on purpose, the court can order your landlord to pay your lawyer's fees. This counts as part of the court costs.

    Source:

    1. § 42-55, North Carolina General Assembly. Law.